Takeover deadline set for Venture

Venture Production wants a period of uncertainty brought to an end

The owner of British and Scottish Gas, has been told it must make clear whether it intends to bid for Venture Production by 13 July .

Centrica has been slowly building its stake in the Aberdeen-based oil and gas company and now holds a 23.6% share.

Executives from the two companies recently met but Centrica issued no offer for the oil firm.

Venture Production then asked the takeover panel to issue what it called a "put up or shut up" deadline.

In a statement, Venture said by 13 July, Centrica will have had nearly four months to put forward a firm offer and it was in the best interests of the company that the period of uncertainty was brought to an end.

'Stranded' reserves

Venture Production mainly operates in the North Sea, bringing into production oil and gas fields known as "stranded" reserves.

These are fields that were at one time thought to be too uneconomic or difficult to extract from.

Since 1999 the company has increased production from only 200 barrels of oil per day to 45,000 barrels of oil per day at the end of 2008.

Its annual pre-tax profits showed a 82% increase on the previous year to £184m.

Centrica is thought to be interested in buying Venture Production because it would give it another source of supply which could guard against price volatility.

If Centrica fails to make an offer for Venture, under stock exchange rules it will not be able to approach the company again for six months.