2009 Production Guidance of 19,000 BOE/D Pro Forma for Sale of Hastings Complex

Reiterates No Short-Term Debt Refinancing Needs

DENVER, Dec. 5 /PRNewswire-FirstCall/ -- Venoco, Inc. (NYSE: VQ) today announced it will scale back its forecast of 2009 capital expenditures from $300 million to $225 million.

"We remain very cognizant of the unusual financial times and are committed to managing our capital expenditures to sustain the company," explained Tim Marquez, Chairman and CEO. "Our portfolio of capital projects is robust and provides us with significant flexibility to defer spending in response to changing market conditions."

The company's current debt includes $150 million of Senior Notes due in December 2011, a $500 million Term Loan due in September of 2011 (with the ability to extend the maturity to May 2014 in certain circumstances) and a Revolving Credit agreement due, unless refinanced, in March 2011. The current borrowing base under the revolving credit agreement of $200 million was redetermined in November and contemplates the sale of the Hastings Complex to Denbury Resources in February 2009. The company expects proceeds from the sale of the Hastings Complex to be used principally for debt reduction.

"We estimate production for 2009 will be 19,000 barrels of oil equivalent per day based on the $225 million capital budget. This reflects flat production compared with 2008, pro forma for the sale to the Hastings field," Mr. Marquez noted. "Given the uncertain market environment, we will continue to evaluate and adjust our capital budget and production goals throughout 2009."

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 2009 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.

SOURCE Venoco, Inc.