Anzon Says Reports Shows Increase in Basker Manta Reserves

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 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.