For more than 20 years, Venoco has demonstrated the requisite qualities to succeed and prosper including: a solid base of high quality assets located in hydrocarbon-rich basins; significant technical and operating experience in the oil and natural gas industry; a reputation for strong environmental, safety and regulatory compliance; the ability to identify undervalued assets and reinvigorate those assets to substantially increase production and reserves; and the flexibility that comes with operational control over the majority of our properties. These attributes allow us to continue to succeed in the long term.
High Quality Assets
The majority of our fields are comprised of oil weighted, low decline, long lived producing assets. These fields have large volumes of hydrocarbons in place with multiple productive horizons which yield the potential for future growth.
Venoco’s management team averages more than 25 years of experience in the oil and natural gas industry with major and independent energy companies throughtout the world. Our technical and operational personnel have substantial experience in the oil and natural gas industry across a broad range of disciplines. A substantial portion of our technical and operational experience is in California, one of the most stringent regulatory arenas. The depth and quality of our management and operations teams give us a distinct advantage, especially in California.
Environment, Safety & Regulatory Focused
Since being established in 1992, Venoco has maintained an uninterrupted focus on protecting individuals and the environments where we operate. This attention to safety and environmental protection has been recognized by federal and state regulatory agencies with numerous awards and acknowledgements. Our positive reputation is an important asset, particularly when permitting projects with state and local regulatory agencies and when competing to acquire properties.
Acquisition & Exploitation Experience
Venoco has grown by acquiring undervalued and under-exploited fields and rehabilitating the properties into high quality producing assets. One of our primary objectives is to apply our engineering expertise to newly acquired fields to improve recovery rates and as a result, substantially increase production rates and reserve volumes.
We have substantial flexibility in adaptingour activities to respond to changes in commodity prices and other general business conditions. We maintain operating control of the majority of our properties allowing for the efficient management of overhead, production costs and capital expenditures. Additionally, we have relatively few medium and long-term drilling commitments, which allow for the deferral or reallocation of capital when needed.
For more than 15 years, a substantial portion of our production has come from the fractured offshore Monterey shale formation. We believe there are significant opportunities for the exploration of the Monterey Shale Formation onshore and that our offshore experience positions us well to take advantage of these opportunities.
Our goal is to enhance the value of Venoco through the application of our competitive strengths and by executing a long-term growth strategy.
- Develop low risk, high impact locations which exist in our current inventory of projects
- Advance long-term projects to “drill ready” status
- Acquire underdeveloped assets with oily production and low risk upside
- Apply engineering and operational expertise to maximize field potential
- Maintain an efficient operating cost structure
- Execute a hedging program to provide predictable cash flows
- Continued focus on debt reduction