Anzon Begins Loading Crude from Basker-Manta Field

The Basker Spirit shuttle tanker has been moored at its Basker location Single Point Mooring (SPM) since midnight last night and export of crude oil from the FPSO Crystal Ocean commenced at day break this morning.

Production from the Basker-2 well into the Crystal Ocean was recommenced from the upper zone around midday today. The production rate will be set at approximately 10,000 bopd with some variation consistent with the objectives of the Extended Production Test (EPT).

The SPM repair was completed in-situ using work boats and divers. It is anticipated that the Basker Spirit will remain moored on location, weather permitting, until early to mid January when the first sale of the Basker crude will be completed.

This is the last status report in respect of the EPT, the initial phase of the Basker-Manta oil field development, which is now considered to be successfully completed.

The next report is anticipated when the drilling for the Full Field Development (FFD) is commenced in January 2006 after the Ocean Patriot completes its assignment on the Culverin-1 exploration well. (Culverin-1 will be operated by Nexus Energy Limited, in which Anzon Australia Limited will have a 10% interest.) The FFD will involve the drilling of four wells with the first well scheduled to be Manta-2.

The participants in the BMG Joint Venture are Anzon Australia Limited as operator with 62.5% and Beach Petroleum Ltd with 37.5%.