UK North Sea independent exploration and production operator Venture Production has rejected an 845 pence-per-share offer from utility Centrica plc, the owner of energy supplier British Gas, for the remaining 71 per cent stake it does not own in Venture.

Centrica had launched a £1.3 billion hostile bid for Venture on Friday, after, it boosted its holding in Venture to about 29 per cent after buying the 5.4 per cent stake owned by private equity firm 3i.

The offer values Venture at 845 pence per share, which is almost double the price of Venture's shares in January before Centrica signalled its interest in the company.

It represents a premium of 7.6 per cent to Friday's closing price.

"We are the leading independent gas producer in the North Sea," said Mike Wagstaff, chief executive of Venture.

"In no way does this offer recognise the strategic position and high quality of our UK gas reserves and resources for which the markets have clearly and consistently established significantly higher values across a number of recent transactions. Our strong financial position enables us to exploit both our existing strategic portfolio and future acquisition opportunities," Wagstaff said.

The Takeover Panel had given Centrica until 5pm on 13 July to "... announce a firm intention to make an offer for Venture .....or announce that it does not intend to make an offer for Venture."

Centrica is keen to acquire Venture so it can boost its gas production and avoid buying gas on the wholesale market at volatile prices to supply its customers.

It has been buying up exploration acreage in Norway, Nigeria and the Caribbean. Most significantly, it boosted its electricity resources by buying 20 per cent of the UK's largest nuclear producer, British Energy, from French state utility firm Electricite de France SA earlier this year.

Venture has been in an "offer period" since 13 March 2009 when Centrica declared it was ready to make an offer for the North Sea gas company.

Venture owns the largest gas assets in Britain not tied to a major utility, with around two-thirds of its daily production of 45,000 barrels of oil equivalent extracted in the form of gas. The company, last month reported an 81 per cent increase in 2008 pre-tax profits at £184.2 million.

Speculation is rife that Centrica's bid may attract rival bids from Germany's RWE and E.ON as well as France's GDF-Suez. Some energy giants, such as Sweden's Vattenfall and Denmark's Dong had already said that they were not looking to bid for Venture.