DENVER — Denver-based Venoco Inc. said Monday it expects to increase oil and gas production next year while plowing more money into operations.
The oil and gas company, headed by Tim Marquez, forecasts production between 17,750 and 18,250 barrels of oil equivalent per day in 2012, up from the average of 17,500 barrels this year. Capital spending will be $255 million, up from $250 million in 2011.
Like other petroleum companies, Venoco also plans to produce more oil than natural gas next year to capitalize on an expected rise in oil prices. Natural gas prices have been a disappointment recently, with prices less than half of what they fetched in 2008.
“We expect to see revenue grow considerably in 2012, even on the modest production growth we are forecasting,” Tim Marquez, Venoco chairman and CEO, said.
Venoco said that its capital spending will be focused on legacy oil fields in Southern California, the Monterey Shale region of California and the Sacramento Basin.
Venoco stock closed at $8.58 on Friday, nearer the lower end of their 52-week range of $22.46 to $6.67 per share.
