The net loss for the third quarter of 2005 includes the effect of a $16.2 million (pre-tax) unrealized loss on certain commodity derivative contracts that do not qualify for hedge accounting in accordance with SFAS 133. Excluding this charge, Venoco had net income of $8.0 million for the third quarter of 2005.

This compares to net income of $7.5 million in the third quarter of 2004 excluding the effects of the $0.9 million (pre-tax) unrealized commodity derivative loss for that quarter.

Venoco’s earnings before interest, taxes, depletion, depreciation and amortization (EBITDA) for the third quarter of 2005 was $6.4 million, as compared with $16.6 million of EBITDA in third quarter 2004. These EBITDA figures include the pre-tax impact of third quarter realized commodity derivative losses of $8.3 million in 2005 and $5.0 million in 2004.

They also include the impact of the above mentioned third quarter unrealized commodity derivative losses of $16.2 million in 2005 and $0.9 million in 2004. Excluding the impact of the realized and unrealized commodity derivative losses, Venoco’s third quarter 2005 EBITDA was $30.9 million, up 38% from third quarter 2004 EBITDA of $22.4 million. Please see the end of this release for a reconciliation of EBITDA and EBITDA before the pre-tax impact of realized and unrealized commodity derivative losses to net income.

Venoco’s EBITDA for the nine months ended September 30, 2005 was $27.4 million as compared with $44.9 million of EBITDA in the first nine months of 2004.

These figures include the pre-tax impact of realized commodity derivative losses of $15.4 million in the first nine months of 2005 and $11.1 million in the same period in 2004.