Gas row helps lift Venture's share price

VENTURE Production shares briefly surged to a three-month high yesterday on hopes the company, a significant producer of gas, would benefit from fears over supplies to Europe.

More than half of the Aberdeen-based group's production – about 44,000 barrels of oil equivalent in 2008 – comes from gas, whose price has remained more resilient than crude oil's.

Traders said the blip was likely to have resulted from hopes that Venture would benefit from a developing squabble over supplies to Europe between Russia and Ukraine in recent days.

Sources close to the company said most of Venture's production is sold through hedging contracts, meaning only a sustained increase in wholesale gas prices would have a significant impact on the firm's profits.

Venture shares rose more than 10 per cent in early trading, but as gas prices eased, shares slipped to close up 7.25p, or 1.6 per cent, at 467.75p.