Venoco Inc.

Venoco Inc. has retained Macquarie Tristone to sell all of its Texas Gulf Coast assets in three packages. Together, the three packages include a 46.9% average working interest (39.4% net revenue interest) in 43,724 gross acres (16,238 net). Production is 1,623 barrels of oil equivalent (60% oil). Net monthly cash flow is approximately $1.5 million. The Gulf Coast package includes an 86.3% average working interest (69.3% net revenue interest) in 37,075 gross acres (13,393 net) primarily in South Liberty/Barbers Hill, AWP, Word, Kurten/Madisonville West and Constitution fields. Total production is 878 barrels of oil equivalent per day (30% oil) from 91 producing wells. Net monthly cash flow is $660,000. Upside includes development drilling, behind-pipe opportunities, reactivations and exposure to the Eagle Ford and Bossier shale plays. The Manvel package includes a 100% working interest (84.8% net revenue interest) in 1,830 gross and net acres. Production is 690 barrels of oil equivalent per day (96% oil) targeting the Miocene and Frio reservoirs from 49 producing wells. Net monthly cash flow is $597,000. Upside includes includes infill drilling, recompletions, reactivations, operational enhancements and CO2 potential. The Hastings package involves a 2% overriding royalty interest in 4,819 gross acres (1,015 net) in Legacy Gulf Coast field with 1.3 billion barrels of original oil-in-place in stacked Frio sands. Net production is 55 barrels of oil equivalent per day (100% oil) from 132 total producing wells prior to a working interest back in.. Net monthly cash flow is $242,000. Venoco sold these assets to Denbury Resources Inc. in February 2009 and retained a 2% overriding royalty interest with 22.3% working interest back-in after payout. A reserve report is available by DeGolyer and MacNaughton. The data room will open in early February. The bid due date will be in early March. Contact Logan Magruder, 713-651-4229, logan.magruder@macquarie.com.