Venoco shares lift after company lowers 09 budget

NEW YORK - Shares of the independent oil and gas producer Venoco Inc. rose on Friday after the company cut its 2009 capital budget estimates to $225 million from an earlier forecast of $300 million.

The Denver-based company's stock rose 3 cents, or $1.30, to $2.33, off 90 percent since its year-peak of $23.99 in June. Shares of the company have tumbled since the summer as crude oil prices have taken a beating month after month.

Tim Marquez, chief executive, cited the faltering economy as its incentive for scaling back the budget and "managing our capital expenditures to sustain the company."

Under the new budget Marquez estimates 2009 production will be 19,000 barrels of oil equivalent per day.

The company also said it is considering selling its Hastings Complex to Denbury Resources in February 2009 to pay off some of its debt. The company's current debt includes $150 million of senior notes due December 2011, a $500 million term loan due September 2011 and a $200 million revolving credit agreement due March 2011.

Meanwhile, crude oil prices sank further by $1, or 2.3 percent, to $42.67, off 70 percent from July's peak, and the lowest price since 2005.

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