Venoco ups production guidance, increases budget

The company said 2008 production is expected to exceed its current forecast of 20,500 to 21,500 barrels of oil equivalent per day, and raised its full-year capital budget to $300 million from $235 million.

"As a result of our solid production growth and strong commodity prices, we have identified a variety of development projects that we want to continue or expand as we head into 2009," Tim Marquez, Venoco's chairman and chief executive, said in a statement.

They include expanded drilling in the Sacramento Basin, the acquisition of more acreage in key exploration areas, initial expenditures for the company's South Ellwood full field development, and activity in the Hastings field in Texas, he said.

Shares of Venoco fell 46 cents, or nearly 3 percent, to $14.94 in morning trading as the broader markets tumbled on disappointing economic news.