Venture Production plc, the Aberdeen based UK independent oil and gas production company, provides a further update on field performance and activity following on from the announcement of first production from the new Chestnut Field in mid-September. Venture is the field operator and holds a 69.875% working interest in the part of block 22/2a containing the Chestnut field.

The field has already produced nearly 500,000 barrels of oil and the second lifting via tanker off-take has been successfully completed. The average gross production rate since first oil is 12,000 barrels of oil equivalent per day (boepd) or 8,400 boepd net to Venture. The production up time since first oil has been in excess of 99% despite final commissioning activities on several systems continuing through the period.

A second Chestnut production well, which was spudded on 7 September 2008, has now been successfully drilled, completed and tested. The well was completed across 64' of oil bearing sandstone and produced at a maximum gross rate of 9,000 boepd during testing, although the rate was restricted by the surface test facilities. Pressure measurements taken during testing confirmed that the well is connected to the main body of the field and can therefore be supported by the injection well that was drilled in 2006 as part of the overall field development plan. The new production well will be tied-in to the subsea infrastructure during early 2009 and is expected to significantly increase production rates, recoverable reserves and overall field life. Investment in this second production well was sanctioned in May 2008 and on current plans, will have been drilled and brought onstream in less than nine months.

Commenting on the news, Mike Wagstaff, Chief Executive said, "Production thus far from the Chestnut Field is at the upper end of our expectations. Most encouragingly, the results of the second production well are exactly what we had hoped for and are testament to the innovative seismic technology which we have used. Once on stream next year, the second production well will confirm Chestnut as major contributor to Venture group production.

Once again Venture has demonstrated an ability to profitably acquire, develop and produce assets that had been left 'stranded' by previous owners. Further, in bringing Chestnut onstream with the Hummingbird FPSO we have also proven a new field development concept that will open up a number of smaller North Sea accumulations to development."

Chestnut Field key facts

• The Chestnut field is one of the oldest undeveloped oil fields in the North Sea having been discovered in 1986 • Chestnut lies approximately 180km east of Aberdeen in a water depth of 120m and is 13km south east of the Alba oil field • The Chestnut field co-venturers are: - Venture Production plc (Operator) - 69.875% - Bow Valley Petroleum (UK) Limited - 15.125% - Atlantic Petroleum UK Limited - 15.000% • Venture acquired an initial 5.0% interest in Chestnut in 2001 and increased its stake to 69.875% through further acquisitions in 2002 and 2003 • FDP approval for Chestnut was obtained in late 2005 for a single production well development with water injector support • The water injector well (22/2a-12) was drilled by Venture in mid-2006 and showed good pressure communication with the original production well • First oil was achieved on 22 September 2008

Tags: Venture Production plc