DENVER, April 4 /PRNewswire/ -- Venoco, Inc. today announced that it has
closed the sale of its Big Mineral Creek (BMC) field located in Grayson County
in north Texas to BlackWell BMC, L.P. for a sales price of $45 million
adjusted to the effective date of February 1, 2005.
Venoco acquired BMC from Shell E&P in August 1996 at which time the field
was producing approximately 411 barrels of oil equivalent per day (BOE/d) net
to Venoco's interest. Since that date Venoco's net production is
approximately 2.4 million barrels of oil equivalent (MMBOE) from the field.
Average net production for March 2005 from the 70 wells in the BMC field was
approximately 559 BOE/d.
"The sale of the BMC field is consistent with our previously announced
plan to divest this non-strategic property and work to redeploy the proceeds
into strategic acquisitions. Our primary focus continues to be opportunities
in California where we believe we maintain a significant competitive
advantage," noted Tim Marquez, Venoco founder, CEO and Chairman.
Venoco also completed the acquisition of Marquez Energy LLC (MELLC) and
its operations in the Sacramento Basin of California on March 21, 2005.
MELLC's average net production in the first quarter of 2005 was approximately
450 BOE/d. Year-end 2004 reserves for MELLC were 2.0 MMBOE.
Both the sale of the BMC field and the acquisition of MELLC were closed
utilizing the services of an exchange agent in order to allow the Company to
best take advantage of the tax-deferred exchange provisions applicable under
Internal Revenue Code Section 1031.
About the Company
Venoco is an independent energy company primarily engaged in the
acquisition, exploitation and development of oil and natural gas properties,
with offices in California and Denver, Colorado. Venoco operates three
offshore platforms in the Santa Barbara Channel, has non-operating interests
in three others, and also operates two onshore properties in Southern
California, and over 100 natural gas wells in Northern California.
Statements Regarding Forward-Looking Information
This press release contains forward-looking statements regarding Venoco,
within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act. Actual results may differ materially from those presented.
Factors that could cause results to differ materially include changes in oil
and natural gas prices, future acquisitions or divestitures, inaccuracy in
reserve estimates or assumptions underlying those estimates, the impact of
litigation or other factors, many of which are beyond the company's control.
Venoco assumes no obligation to update the forward-looking statements included
in this press release.
No Offer of Securities
This press release is neither an offer to sell nor a solicitation of an
offer to buy any Venoco securities. Venoco's notes have not been registered
under the Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the United States absent registration under,
or an applicable exemption from, the registration requirements of the
Securities Act and applicable state securities laws.
SOURCE Venoco, Inc.