Venoco, Inc. announced that it has withdrawn its Form S-1 filed in February of this year with the Securities & Exchange Commission for a registered public offering of a master limited partnership.
"We've continued to identify and pursue attractive development projects in our mature, long-lived, oil fields. Combined with rising commodity prices and changing capital market conditions there is little incentive to pursue the MLP," said Tim Marquez, Chairman and CEO.
"The Draft EIR related to our South Ellwood field in California was recently released and we are nearing Denbury's first exercise date in our joint venture CO2 flood in our Hastings field in Texas. We don't want a complicated ownership structure to diminish the economics of these significant projects."
"Venoco's production and cash flow have been increasing, and we are targeting our capital spending to be within our cash flow for 2008 before working capital adjustments," continued Marquez. "If Denbury exercises its option to purchase the Hastings field at the end of this year, we expect to use the proceeds for a combination of debt reduction, unwinding commodity hedges, and possibly acquisitions."
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