Venture looks to restore investors' faith with 8% rise in oil production

VENTURE Production yesterday said its first-half production was just below record levels at 45,700 barrels of oil per day as the Aberdeen-based company sought to restore faith with investors.

FTSE-250 member Venture was punished by analysts earlier this year on the back of several production warnings caused by delays, but yesterday sought to reassure investors that it was back on a growth path, with production up 8 per cent on last year.

Sales revenue in the six months to 30 June rose significantly, with around half of the company's production unhedged.

Venture warned the timing of production at its major Chestnut field, expected to begin later this year, was uncertain. Chief executive Mike Wagstaff said that, in current conditions, "getting anything done on time or remotely near to on budget is tough."

Wagstaff said while 2007 was quiet for acquisitions, the group had done seven deals this year, including in the Irish Sea for the first time, which could add "significant" production in the future. He added: "Individually, none of the deals are huge, but in aggregate they have the potential to add 10,000 barrels a day."

Shares fell 19p to 850p as crude oil retreated from Monday's record levels.