Here's what KBC had to say about them.

http://www.kbcpeelhunt.com/pdfs/Oil04Mar05.pdf

Venture is by a margin the cheapest of the North Sea focused E&P
companies in terms of its forward cash flow multiple. With key new
gas field development seeming to be on track, the production base
will get not only an anticipated strong addition from March but will
also derive improved asset diversity. The company has so far
significantly under-delivered in financial terms and improved market
confidence and rising profitability could make this a strong
performer in 2005.
While Venture has generally managed its primary North Sea
production and development business competently, and field
performance, with the exception of Sycamore, has been up to
expectations, the financial performance has been undermined by
events. However, delivery of the key new field developments seems
to be on track and the company should more than double production
capacity to over 45,000 barrels of oil equivalent by the end of 2005
and should achieve on average at least 30,000 boe/d in the year.
The misfortunes continued on Sycamore, with an injector well
apparently not communicating with the intended reservoir section.
This caused the company to reduce 2005 production guidance by
about 1,500 b/d to 31.0-33.0 kboe/d.
The development programme under way continues through 2006
giving a further year or two of growth in the production profile from
within the existing reserve inventory. The company therefore has
time to seek further development opportunities either within its
existing licences or by acquiring or licensing new assets.
The stock is trading close to our Core NAV estimate but is on a lower
prospective multiple of earnings (2005 PE of 7) and cash flow (P:CF
of 2.3) than any other E&P stock. The appointment of a new FD
relieves CEO Mike Wagstaff of his multiple responsibilities, which
should improve confidence in delivery.
With 50% of estimated production in 2005-2008 in the form of natural
gas, Venture offers direct exposure to the UK gas price. Moreover,
the reliability issues that have dogged the company have been in its
oil rather than gas operations.

Somewhere I have read that hedging is reducing rapidly to around 10/15% of production - not sure what the source was. According to Citywire article this week, hedging last year lowered the average price achieved pb to $24.88 (equivalent 14.88) with avg 16832 boepd. I guess they needed price certainty to secure funds for capex etc. With hedging substantially removed, and average Q2 production about double last year, revenues should quadruple, or more.

Citywire also mentioned average life cost per barrel, and suggested that these will fall due to economies of scale - last year, they were 6.59 pb. It does not take much imagination to see that the margin on production over last year is growing substantially! Any wonder why the stock is up from 2 to 4? Then I compare to other oil explorers (who IMO carry greater risk of abortive wells), and some expect relatively modest production growth next year (see Burren for instance). I do not have a crystal ball, but VPC p/e on today's production looks too low, the forward p/e looks far too low, and then the share price should factor in some premium for growth in future years. Yesterday, the target 55-60k boepd by 2007 was reaffirmed. I failed to see much problem with yesterday's announcement on minor drilling delays. If the oil and gas prices hold up (or indeed strengthen going into the winter), then the outlook on earnings is encouraging.

Numis's latest guess at forward earnings on 27.7.05 provides estimated eps of 56.9p for year to 12/05, rising to 169.7p next year. At 400p, thats a p/e of 7 falling to less than 3.


Edit - It's now 432 and may have broken out upwards again.

this is looking promising, may buy a few...

http://www.newratings.com/analyst_news/article_946773.html

Venture Production (VPC.LN) +5.0% at 456.5p, extending last week's gains amid continuing high oil prices but no stock-specific news, notes analyst. But says "oil price is higher than most expected even 12-18 months ago. There has got to be an increasing chance of consolidation." Believes those companies with production and reserves are most likely to become targets. Cites Venture, Tullow (TLW.DB), Cairn (CNE.LN) as candidates. "It will only take one bid at high valuations for the whole sector to see a rerating." (PBA)


Volume high and increasing in the last month!

Venture Production: BUY Highly competent operational management and improved asset diversity has led to a re-rating of this stock which is still continuing. Equal exposure to UK gas prices as well as oil.

http://www.kbcpeelhunt.com/pdfs/mmeetings/NEOilGas9Aug05.pdf

This one's a goodun !!!
Couldn't resist a few today at 481p after the Peel Hunt tome.
Not so sure about Oilexco - a bit more risky.

Quiet thread ,,exciting share... I got in to these a couple of days ago when they dropped, they have had a good write up in the TMI recently, are you lot still holding ???

I'm still in there (indeed picked up a few more at 454p last week).
It is a goodun and, assuming the oil price doesn't collapse, they will be making exceptional profits for the next few years.

Burren is also attractive after the big correction last week.

Cheers supermono , don't see the oil price going south at the moment, your right Burren is looking worth a punt .

I've reduced my holding by half it's value and tied some profits in.

Will increase again if it looks right.

Last few days have been good,,over 5 now ,reading the figures in TMI they look good to carry on up,,Cheers JB..

Hi Jimmy again, just replied on Neteller thread
had this one in investaquest
with bonus, gutted went from 9th to 12 on final day
waiting for verified positions but think i have just missed
the finals time will telll
however put a wedge on this one for real today
miles left to go i still think.
All the best
HUSTLER

Seems like good news and ahead of schedule too!


RNS Number:0318R
Venture Production PLC
09 September 2005

First Gas From Saturn Field

Venture Production plc ("Venture"), the Aberdeen based UK independent oil and gas production company, today announces that first gas has been delivered from the ConocoPhillips operated Saturn field. The field is located in UKCS Blocks 48/10a and 48/10b and Venture holds a 22% working interest in the Saturn development.

Saturn has been developed via a six slot normally unmanned platform operated by ConocoPhillips and is tied directly into the LOGGS gathering and export pipeline system, which terminates onshore at Theddlethorpe. First gas has been delivered well ahead of plan, which under the original schedule envisaged start-up during Q4 2005. A phased drilling programme is in place that is expected to deliver a peak gross production rate of 170 million standard cubic feet per day ("MMscfpd") during 2006 from a total of three wells. Once stabilised, initial gross production rates from the first Saturn well are expected to be around 75 MMscfpd. Venture's share of this initial production will be 16.5 MMscfpd and Saturn will be a material contribution to Venture's anticipated average net production rate of between 140 and 150 MMscfpd during the upcoming winter months.

Commenting on the news, Mike Wagstaff, Chief Executive said:

"We are delighted to be able to announce early delivery of first gas from Saturn and to congratulate the operator ConocoPhillips on successful management of a key Southern North Sea gas development. Following on from the start-up of our Annabel field in early April, this latest successful development has increased Venture's access to one of the largest pools of undeveloped gas in the Southern North Sea at a time when the UK gas market is increasingly attractive for producers."

Hopefully this will bump start the SP again.Good News.

Great news today and just the best possible..

I am glad I got in yesterday.EPS growth is excellent for the next two years. With the latest news we might get some newspaper recommendation over the weekend. This could be another CNE.

An interesting article about future oil price.
http://www.bloomberg.com/apps/news?pid=10000082&sid=aWJgsbCFqveY&refer=canada

Venture(VPC) have issued a Trading Update this morning...

http://www.companyannouncements.net/cgi-bin/articles/200512130700285492V.html

The South Sycamore production well (SP-4) (Venture 100%) was successfully brought on stream on 10th December at an initial average rate of over 9,000 boepd.

The central Sycamore water injector well (SW-2) (Venture 100%) was completed in early November and awaits final sub-sea tie-in. As anticipated, the level of depletion encountered suggests there is good reservoir connectivity with the SP-2 production well.

Commercial terms have been agreed with CNR to cover the drilling of the Ash exploration well (Venture 100%), again utilising the Tiffany platform drilling rig. This well is expected to spud during the second half of 2006. Being a platform well, if successful, it could be completed as a producer and brought on stream immediately

Greter Kittiwake

Following the successful introduction of water injection support to the reservoir, the Mallard field (Venture 50%)

Telegraph share of the year

Vanture is tipped as on of their share of the year in the daily Telegraph.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/01/02/cctips02.xml&sSheet=/money/2006/01/02/ixcity.html

I would expect a 10p rise tomorrow thanks to the Telegraph.