DENVER, Oct. 1 /PRNewswire-FirstCall/ -- Venoco, Inc. (NYSE: VQ) today announced that it expects its 2009 production to average between 20,500 to 21,500 barrels of oil equivalent per day, an organic growth rate of 10-15% relative to 2008 after giving pro forma effect to the sale of the company's Hastings complex, which is expected to close in the first quarter. The company's 2009 exploration, exploitation and development capital expenditures are expected to be $400 million. Contingent upon the receipt of approvals for Venoco's South Ellwood development plan, up to an additional $75 million could be deployed in 2009.

"We have a solid inventory of projects to develop this year, which we expect will translate into significant production growth from each of our operating areas," commented Tim Marquez, Venoco's Chairman and CEO.

"In the Sacramento Basin we will be adding two more drilling rigs to our current five rigs and continuing the hydraulic fracturing program we began in late 2007. In Texas, where we'll close on the sale of the Hastings complex in the first quarter, we expect to increase our efforts in the Manvel field where we'll utilize the experience we've gained in Hastings to enhance the field. And, our efforts in Southern California will be aimed at the West Montalvo field, where we expect to drill 6 onshore development wells, and the Sockeye field where we expect to continue our waterflood project," continued Mr. Marquez.

"In anticipation of regulatory approvals related to our South Ellwood full-field development project, we are initiating expenditures on certain long-lead items. Once approvals are received, we will increase capital spending on the development effort," noted Mr. Marquez.

Approximately $200 million (50%) of the capital budget will be deployed in the Sacramento Basin, $70 million (17%) in Southern California and $20 million (5%) in Texas, with $75 million (19%) going toward exploration projects in a variety of areas and the remaining $35 million (9%) toward leasehold and capitalized G&A. By category, $251 million (63%) will be spent on development wells and wellwork, $75 million (19%) on exploration, $39 million (9%) on facilities and other, with the balance toward leasehold and capitalized G&A.

"We plan to manage our financial requirements for the 2009 capital budget using cash flow from operations and a portion of the proceeds from the sale of the Hastings complex," explained Tim Ficker, CFO.

General & Administrative and Lease Operating Expenses

2009 General & Administrative expenses are expected to average $4.25 per barrel of oil equivalent (BOE) and Lease Operating Expenses are expected to be $15.00 per BOE.

"Solid execution of our growth plans in 2008 has translated into a very successful year for Venoco," Mr. Marquez continued. "Venoco has increased production as planned during the year while laying the foundation for future growth."

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, 2009 production and expenses, planned capital expenditures and development projects, the closing of the Hastings complex sale, the receipt of approvals relating to the South Ellwood full-field development plan, 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.