Ladies and gentlemen this AGM is being held at a time when we have just completed another significant year in the development of the Company. From an operational perspective our subsidiary, Anzon Australia, has now completed two full years of rapid project development that has resulted in the successful development and commissioning of the Basker-Manta oil project in the Gippsland Basin in Australia.
We are very pleased with the progress made by Anzon Australia who have now, in what I am sure is record time, developed an oil field in Bass Strait using an innovative approach and who are now running a profitable oil producing operation.
Anzon Australia is currently experiencing an improved level of production since the initial vibration problems experienced with the compressor were solved. Anzon Australia is now installing some additional equipment on the compressor to enhance its gas handling capacity. The equipment installation is being implemented on site offshore and Anzon Australia will be able to test its impact during the first two weeks of June 2007. Until that testing is completed Anzon Australia is indicating that the long term average production rate from its operation will be of the order of 14,000 bopd after allowing for the impact of equipment downtime, shipping/trading and weather.
We look forward to the results of that testing and the enhancement of the current production rate as we do for the final investment decision on the proposed expansion of the BMG project to secure the ultimate recovery of the additional oil reserves and the marketing of the substantial gas reserves in the fields.
Our Indonesian operations have been disappointing both in an exploration and production sense. The drilling program for 2007 is now under review as the Company looks to determine how best to maximize our investment in Indonesia.
During the 2006 year, the Company successfully raised £40 million through the issue of a combination of convertible notes and bonds from RAK Petroleum PCL known as Ras al Khaimah Petroleum. This funding will provide the Company with the ability to grow its asset portfolio to supplement its Australian and Indonesian assets.
We welcome Ras al Khaimah Petroleum's support and look forward to a mutually beneficial relationship developing between the two companies over coming years.
Your Company is pursuing a number of exploration and exploitation opportunities. In particular, we are focusing on ventures where we consider the prospects to have considerable technical merit. Our areas of focus being South-East Asia, the Middle East, North and West Africa. In 2007, it is anticipated that a portfolio of assets will be established to supplement the Australian and Indonesian assets.
In conclusion, I should thank our diligent and competent staff together with staff of our subsidiary, Anzon Australia, in completing the BMG oil development in such an efficient manner.
Personally, I would like to thank my fellow Directors who have served throughout the year, acknowledge the contribution of Mr Steve Koroknay as Chairman of the Company and Mr Jean-Marc Georgy as Deputy Chairman of the Company and we look forward to the contribution of Mr Philip Turberville who joined the Board late last year.
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