Basker Manta Reserves Increased By 30%

The Basker Manta Gummy Joint Venture reports the results of the post-Basker-2 Independent Engineer's reassessment of reserves for the project. Gaffney Cline & Associates has advised the Joint Venture of the Proved plus Probable (2P) Reserves of Basker and Manta increasing by 30% from 23.3 million stb to 30.1 million stb.

As has been previously reported, the successful drilling of the first development well, Basker-2, in offshore Gippsland Basin, coupled with extensive wireline logging and pressure testing provided a substantial level of data to enable the update of reserves.

GCA assessed reserves in accordance with international standards and definitions (Society of Petroleum Engineers/World Petroleum Congress (SPE/WPC)), and classified reserves under the Proved (1P), Proved plus Probable (2P) and Proved plus Probable plus Possible (3P) categories. Reserves increased in all three categories.

"This considerable increase in reserves is very pleasing and is consistent with experience in nearby fields producing from the Intra-Latrobe formation. Our aggressive approach to development is clearly justified." said Mr. Steven Koroknay, the Executive Chairman of Anzon Australia.

This news comes at a time when the offshore installation of the flowlines and hydraulic umbilicals to operate the subsea well, Basker-2, is nearing completion. It is anticipated that production will commence in early November, less than 12 months since the commencement of project detail design and only 11 months after the operator, Anzon Australia Limited, was publicly listed.

During the six month period November 2005 and May 2006, an Extended Production Test (EPT) will be conducted, at rates averaging 8000 bpd. This will enable further reservoir information gathering, while the Full Field Development (FFD), including the drilling of a further 4 wells is carried out. FFD production is anticipated to commence in July 2006 when rates will increase to in excess of 20,000 bpd.

The production system incorporates the innovative use of a mini-FPSO the "Crystal Ocean" dynamically positioned near the Basker-2 well and the shuttle tanker "Basker Spirit" connected to a disconnectable Single Point Mooring (SPM), which will allow the periodic shipment of crude to the marketplace.

Mr. Andrew Young, the Chief Operating Officer of Anzon Australia, concluded that "On the basis of trouble free operations, the production system installation should be accomplished this week, which will be followed immediately with the commissioning of oil production from Basker-2."

The participants in the Basker-Manta Joint Venture are Anzon Australia as the operator with 62.5% and Beach Petroleum with 37.5%.