2009-08-17-2008-05-01

To acquire interest in 6 proven undeveloped gas discoveries.

Venture Production Plc, Aberdeen, U.K., plans to acquire interest in six proven undeveloped gas discoveries close to existing infrastructure in the Caister Murdoch system in the southern North Sea from Tullow Oil Plc (London: TLW) for US$69.8 million. The assets include a 35% interest in the Cygnus discovery in blocks 44/12a and 44/11a; 17.5% in Humphrey blocks 44/16a and 44/11a with an estimated 1 trillion cubic feet of gas in place; 35% in Copernicus and Kepler blocks 44/16b and 44/16c, 66% in Garnet Block 44/27a; 46.15% in Opal Block 43/25a; and 100% in Boulton X and Y Block 44/21e. Additionally, Venture is acquiring Tullow's position in blocks 48/3a and 48/4 which together contain the Morpheus exploration prospect. Combined with its existing part carried interest, Venture will be paying 41.335% of the well cost in return for 41% interest in the license. Total estimated recoverable resources net to Venture is approximately 266 billion cubic feet. Venture chief executive Mike Wagstaff says, "This substantial asset package represents a major step forward in the development of Venture's southern North Sea gas position…With the forward curve for U.K. gas remaining firm we believe the base case development of Cygnus to be a very solid proposition. In addition, the access to up to 1 Tcf of recoverable resources and a range of other development opportunities makes this a highly material acquisition."