DENVER, June 10 /PRNewswire-FirstCall/ -- Venoco, Inc. (NYSE: VQ) today announced that it is revising its annual guidance for 2009 as follows: 


                                                Previous          New
                                                Guidance        Guidance
    Production (BOE per day)                     19,000          20,250
    Lease Operating Expenses (per BOE)           $15.00          $13.50

"The solid production and operating expense results we had in the first quarter are continuing so far this quarter," said Tim Marquez, Chairman and CEO, "so we believe it is an appropriate time to revise our annual guidance."

"We've had very good results from our workover program in the Sacramento Basin and we've also seen oil production continue to rise at our West Montalvo field," Mr. Marquez continued. "Our operating teams continue to focus on identifying and implementing opportunities to lower field-level expenses."

Guidance remains unchanged on G&A and DD&A expenses. The company also clarified that production and property taxes are expected to average $1.90 per BOE in 2009, regardless of commodity prices.

Second quarter production volumes are expected to be slightly lower than first quarter pro forma for the sale of the Hastings Complex. In the Sacramento Basin, Venoco had to shut-in a portion of its production for nearly six weeks in April and May due to a PG&E pipeline repair. The company has been able to return 100% of its wells to production and daily production rates in the Basin have returned to first quarter levels. The company estimates that the effect of the shut-in will be to reduce average daily production by approximately 500 BOE/d in the second quarter.

Venoco's acquisition of Aspen Exploration's assets in the Sacramento Basin was recently approved by Aspen shareholders. As a result, the acquisition is expected to close by the end of the second quarter. The Aspen assets will increase Venoco's leasehold primarily in the Greater Grimes area. Production volumes related to the acquisition are factored into the revised 2009 production guidance and are expected to contribute approximately 250 BOE/d for the full year.

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 thirteen fields in Texas.

Forward-looking Statements

Statements made in this news release relating to Venoco's future production and expenses, the expected closing of the Aspen Exploration transaction, 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 (including the risk of dry holes and other operational problems), 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, including in the "Risk Factors" section of its Annual Report on Form 10-K for 2008, 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.