Venoco, Inc. Announces Exercise of Option

Venoco, Inc. announced that Denbury Resources Inc. has elected to exercise its option to purchase the Hastings complex from Venoco. Denbury and Venoco also entered into an amendment to the option agreement extending by one year certain of Denbury’s performance commitments with respect to implementing a CO2 flood in the Hastings complex.

“This is a significant event for us,” said Venoco Chairman and CEO, Tim Marquez. “The contract provides us time to sit down with Denbury to arrive at a sales price, so we will begin that process immediately.”

In the event the companies are not able to agree on a sales price, the contract provides that the price will be determined by a third party based on the present-value of the proved reserves in the Hastings complex discounted at 10% (PV-10) using year-end 2008 strip pricing and actual operating expenses for the prior 12-months.

On June 30, 2008, Venoco estimated the Hastings reserves to be approximately 18.4 million barrels of oil equivalent. Venoco expects to close the sale to Denbury in the first quarter of 2009.

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.