Venoco Expects 2009 Production to Grow 10-15%
Venoco, Inc. expects its 2009 production to average between 20,500 to 21,500 barrels of oil equivalent per day, an organic growth rate of 10-15% relative to 2008 after giving pro forma effect to the sale of the Company's Hastings complex, which is expected to close in the first quarter. The Company's 2009 exploration, exploitation and development capital expenditures are expected to be $400 million. Contingent upon the receipt of approvals for Venoco's South Ellwood development plan, up to an additional $75 million could be deployed in 2009.
"We have a solid inventory of projects to develop this year, which we expect will translate into significant production growth from each of our operating areas," commented Tim Marquez, Venoco's Chairman and CEO.
"In the Sacramento Basin we will be adding two more drilling rigs to our current five rigs and continuing the hydraulic fracturing program we began in late 2007. In Texas, where we'll close on the sale of the Hastings
complex in the first quarter, we expect to increase our efforts in the Manvel field where we'll utilize the experience we've gained in Hastings to enhance the field. And, our efforts in Southern California will be aimed at the West Montalvo field, where we expect to drill 6 onshore development wells, and the Sockeye field where we expect to continue our waterflood project," continued Marquez.
"Solid execution of our growth plans in 2008 has translated into a very successful year for Venoco," Marquez said. "Venoco has increased production as planned during the year while laying the foundation for future growth."
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