Venture Production has issued a robust defence circular to shareholders advising strongly that they should reject Centrica’s 845p-a-share offer.
Mike Wagstaff, chief executive of the Aberdeen-based oil and gas operator, said: “Venture has high-quality oil and gas reserves and resources with significant upside potential and a strong operational capability.
“We have the financial strength and technical expertise already in place to continue to develop the upside within our portfolio.
“At a time when North Sea production is declining, our increasing production and track record of being able to unlock ‘stranded’ resources will be of increasing strategic importance.
“This strategic value is not reflected in the price Centrica has offered to Venture’s shareholders.
“The longer-term outlook for energy prices is strong, from which Venture is ideally positioned to benefit.”
Venture chairman John Morgan said in a letter within the circular: “My message to shareholders is clear: do not sell your shares on the cheap to Centrica.
“Shareholders should not sign any document which Centrica or its advisers send to them.”
Mr Morgan also said that he and Mr Wagstaff met their counterparts at Centrica on March 23 and again on June 2, adding: “On neither occasion did they indicate any willingness to enter into a discussion on the prospects and value of your company.”
He said that the British and Scottish Gas owner, which since mid-March has built up a 29.9% stake in Venture, launched its formal offer without carrying out any investigative due diligence.
Mr Morgan added: “Centrica must be confident there is more value in Venture than is reflected in the 845p a share offer, which Centrica has chosen to make final.”
Venture shares closed up a penny yesterday at 837p.