Venture Production Arranges New Debt Financing

Venture Production has entered into new debt financing arrangements totaling 585 million consisting of a new corporate debt facility and an institutional private placement of loan notes.

Venture has put in place a medium term committed corporate debt facility of 350 million underwritten and arranged by Barclays Bank plc. The deal was lead by Barclays growing Oil and Gas team in Aberdeen. It is anticipated that the new facility will be syndicated in early autumn with strong interest already expressed by Venture's existing syndicate of lenders. This new facility replaces Venture's previous borrowing base facility.

In addition, Venture has raised US$424 million and 25 million in a private placement of notes with US and UK institutional investors. These notes have final maturities of between 10 and 15 years and are at a fixed rate. The private placement was arranged by Schechter & Co. Limited.

Taken together, these funds will help finance the ongoing development of Venture's existing asset base as well as fund potential future acquisitions.

Marie-Louise Clayton, Finance Director, said:

"This new financing represents another step forward in Venture's development. In particular the willingness of financial institutions to make available medium and long-term debt facilities is an unequivocal vote of confidence in the sustainability of both Venture and the North Sea. We are particularly pleased to have completed these financings in the current challenging conditions in the global debt markets and we look forward to working with Barclays and the Noteholders as Venture utilizes these funds to consolidate its position as the leading independent Oil and Gas Company in the North Sea. Combined with the recent strategic investment by ArcLight and 3i, Venture has an excellent financial base from which to continue our growth. We appreciate the support from our existing banking group and look forward to their participation in the syndication of Venture's new corporate debt facility."

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