BusinessCompany NewsOil company Venture backs hedging policy

Oil company Venture backs hedging policy

Oil company Venture Production has defended its hedging policy despite a decrease in the sales price for for its barrels.

Venture Production’s chairman John Morgan and CEO Mike Wagstaff have defended the company’s hedging policy as it releases its final results.

Link: Firms pocket millions for Shell work

Venture increased its daily production by 26% to 16,832 boe, but the average realised sales price fell by 6% to £14.22 per barrel and turnover was only 15% up at £81.5m.

Venture said this was as a result of the impact of the company’s hedging policy, as well as shifts in exchange rate and the higher proportion of lower value natural gas production.

Morgan and Wagstaff, however, said they were ‘convinced’ that the decision to put in place ‘a significant amount of oil and gas price hedging from 2004 until the end of 2006’ was the correct one.

‘Venture will see the benefits of this in terms of increased production volumes from new development projects coming on stream this year’, the chairman and CEO said.

‘During 2005 and 2006, the proportion of Venture’s oil and gas production that is hedged at prices below current market levels, will fall rapidly from levels seen during 2004.’

Venture reported an operating profit, before exceptional items, of £23.1m for 2004 – 10% down on the 2003 results.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

1m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

9m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor