Anzon Recommences Production from Basker Field

Anzon Australia Limited has recommenced production from the Basker Field located in the Gippsland Basin, offshore Victoria. The mechanical problem previously advised was identified as one of the Crystal Ocean FPSO's production swivels which has now been repaired. The Basker-2 well was re-opened on a 54/64th inch choke at 11.50 am on Wednesday, November 16, 2005 and a stabilized flow has now been established at 9,500 barrels oil per day (bopd) from the upper interval. The gas/oil ratio is 1100 scf per barrel and there is no water production.

The repairs to the Basker Spirit shuttle tanker are nearing completion and the vessel is expected to now return to join the FPSO early next week.

The participants in the BMG Joint Venture are: Anzon Australia Limited 62.5% (Operator) Beach Petroleum Ltd 37.5%