Nov. 7 (Bloomberg) -- Goldman Sachs Group Inc. advised clients to buy shares of Venture Production Plc and Salamander Energy Plc on speculation recent declines overstate the prospect for falling oil prices.

Goldman retained a ``buy'' rating on Venture, a Scottish explorer, and added Salamander to its ``buy list'' with a share- price forecast of 288 pence, according to a note.

``We continue to see substantial potential upside to our price targets for the exploration and production companies,'' Goldman said. ``We believe most stocks are discounting a crude price of around $50 a barrel, well below our oil price estimate.''

Salamander, which has lost 47 percent this year, closed down 17 percent at 130 pence in London yesterday. Venture, down 49 percent since January, fell 6.9 percent to 402.25 pence.

To contact the reporters on this story: Stephen Cunningham in London at

Last Updated: November 7, 2008 02:45 EST