DENVER, Sept. 3 /PRNewswire-FirstCall/ -- Venoco, Inc. (NYSE: VQ) today announced that it has increased its 2008 exploration, exploitation and development capital budget to $300 million from previous guidance of $235 million. In addition, Venoco announced that production for 2008 is expected to exceed the existing guidance range of 20,500 to 21,500 barrels of oil equivalent per day.

"As a result of our solid production growth and strong commodity prices, we have identified a variety of development projects that we want to continue or expand as we head into 2009," commented Tim Marquez, Venoco's Chairman and CEO. "The increased budget includes an expanded drilling program and additional fracs in the Sacramento Basin, acquisition of additional acreage in key exploration plays, initial expenditures for the South Ellwood full field development, and additional workover activity in the Hastings field in Texas," noted Mr. Marquez.

"I am very pleased with our results thus far in 2008," Mr. Marquez continued. "Venoco has increased production during the year while laying the foundation for future growth."

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 and Texas. Venoco operates three offshore platforms in the Santa Barbara Channel, has non-operated interests in three other platforms, operates four onshore properties in Southern California, has extensive operations in Northern California's Sacramento Basin and operates eighteen fields in Texas.

Forward-looking Statements

Statements made in this news release relating to Venoco's 2008 production, planned capital expenditures and development projects, and all other statements except statements of historical fact, 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 extent of changes in oil and gas prices, the timing and results of drilling and other development activities, the availability and cost of obtaining drilling equipment and technical personnel, risks associated with the availability of acceptable transportation arrangements and the possibility of unanticipated operational problems, delays in completing production, treatment and transportation facilities, higher than expected production costs and other expenses, and pipeline curtailments by third parties. All forward-looking statements are made only as of the date hereof and the company undertakes no obligation to update any such statement. Further information on risks and uncertainties that may affect the Company's operations and financial performance, and the forward-looking statements made herein, 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.

For further information, please contact Mike Edwards, Vice President, (303) 626-8320; http://www.venocoinc.com; E-Mail investor@venocoinc.com.

SOURCE Venoco, Inc.