2010-04-16-2010-04-16-2010-05-14

Purchased interest in Manvel Field, ORRI in Hastings Field & other producing assets along TX Gulf Coast in three transactions, gaining 1,641 BOE/d, 7.8 MMBOE proved.

Denver-based Venoco Inc. (NYSE: VQ) plans to sell its interests in Manvel Field, overriding royalty interest in Hastings Field and other oil and gas production along the Texas Gulf Coast in three transactions to undisclosed buyers for a total of approximately $100 million.

The company will retain its 22.3% reversionary working interest in Hastings Field, which it sold to Denbury Resources Inc., Dallas, (NYSE: DNR) in February 2009 for approximately $200 million. Denbury is in the process of completing a pipeline to supply CO2 to flood Hastings Field that is expected to be completed by year-end.

Venoco chairman and CEO Tim Marquez says, "We are pleased with the level of interest in these assets and with the value we'll receive. We will now redeploy capital to concentrate on our very exciting opportunities in California."

Closings are expected by mid-May.

Jack Aydin, senior managing director with KeyBanc Capital Markets Inc., reports production from the Texas properties averaged 1,641 barrels of oil equivalent per day during 2009 and year-end 2009 proved reserves were 7.8 million BOE. He establishes the deal metrics at $12.82 per BOE for proved reserves and $60,938 per BOE per day for production. "We think this is a positive announcement," says Aydin.