Basker Manta Mooring Repaired; Operations Returning to Normal

The Basker Manta Joint Venture has re-established normal operations in their Gippsland Basin project. Repairs to the mooring chain were completed earlier this week, following the mobilization of the Construction Vessel Havila Harmony from the NW Australia to Gippsland, the installation of a new shackle and pin (including some additional securing as a further contingency) and the holing up of the shuttle tanker Basker Spirit. The mooring has been successfully tested and oil is now being transferred directly from the FPSO Crystal Ocean as per normal operations.

Full oil production rates are being established over this week. This ends a 4-month production curtailment following the dislodgement of a shackle pin and mooring chain failure on July 5 2007. Fortunately, notwithstanding the failure, operations have continued using alternative shuttling of the Crystal Ocean to the coast and ship-to-ship transfer of oil to the Basker Spirit. This safe modus operandi has kept rates at about an average of 3100 bopd during this period.

The participants in the Basker-Manta Joint Venture are:

Anzon Australia Limited 40% (Operator)

Beach Petroleum Limited 40%

CIECO Exploration and Production (Australia) Pty Ltd 20%