Venoco, Inc. Releases Revised Production Guidance
June 16 2005 - 10:13PM
PR Newswire (US)
Venoco, Inc. Releases Revised Production Guidance CARPINTERIA,
Calif., June 16 /PRNewswire/ -- Venoco, Inc. (Bloomberg ticker:
552338Z US) today released revised guidance regarding its
anticipated production volumes for the 2nd quarter and for the year
2005. The anticipated 2nd quarter 2005 average net production is
currently expected to be approximately 11,200 barrels of oil
equivalent per day (BOE/D). The company had previously anticipated
it would average approximately 12,500 BOE/D in the quarter. The
change is due to a combination of factors. In the first quarter
Venoco drilled the 3120-15RD4 well from its Platform Holly in the
South Ellwood Field. This well was originally anticipated to be
completed and to contribute significant production volumes in the
second quarter. Due to completion operations that are more
extensive than originally anticipated, the well is now expected to
commence production in the third quarter. Second, in June, during a
routine workover, Venoco experienced downhole mechanical problems
in its 3242-18 well in the South Ellwood Field. The well's average
net production had been approximately 1,300 BOE/D and is currently
approximately 330 BOE/D. Venoco is evaluating various remedial
plans to restore full production. Lastly, industry-wide demand for
contract drilling and workover services has delayed anticipated
production increases. C.E.O. Tim Marquez stated, "While we will
miss the anticipated production from these two wells for part of
2005, both wells should be producing at full capacity this year.
The delay does however mean that we now expect our 2005 average net
production will be approximately 12,000 BOE/D. The delay should not
materially affect our total net reserves in place and we fully
expect to continue our recent trend of growing production volumes,
developed from our current asset base, well into the future." About
the Company Venoco is an independent energy company primarily
engaged in the acquisition, exploitation and development of oil and
natural gas properties in California. It has regional headquarters
in Carpinteria, California and corporate headquarters in Denver,
Colorado. Venoco operates three offshore platforms in the Santa
Barbara Channel, has non-operating working interests in three
others, and also operates two onshore properties in Southern
California and approximately 130 natural gas wells in Northern
California. Forward-Looking Statements Statements made in this news
release, including those relating to future gas and oil production,
and production growth targets and reserves are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on assumptions and estimates that
management believes are reasonable based on currently available
information; however, management's assumptions and the Company's
future performance are both subject to a wide range of business
risks and uncertainties and there is no assurance that these goals
and projections can or will be met. Any number of factors could
cause actual results to differ materially from those in the
forward-looking statements, including, but not limited to, the
timing and results of drilling activity, the availability of and
cost of obtaining drilling equipment and technical personnel,
delays in completing production, treatment and transportation
facilities, higher than expected production costs and other
expenses, pipeline curtailments by third-parties and other
operational risks. Further information on risks and uncertainties
is available in the Company's filings with the Securities and
Exchange Commission, which are incorporated by this reference as
though fully set forth herein. This release can be found at
http://www.venocoinc.com/ DATASOURCE: Venoco, Inc. CONTACT: Mike
Edwards, VP of Venoco, Inc., +1-805-745-2123, or cell,
+1-805-455-9658 Web site: http://www.venocoinc.com/
Copyright