Basker Manta Project Reaches 3 Million Barrels

On Dec. 2, 2007 the cumulative production of oil from the Basker Manta Oil project reached 3 million barrels. The BMG Joint Venture (BMG JV) has achieved remarkable success by fast-track developing these two previously static resources in a water depth of 200 meters, bringing them from concept to full production in less than 3 years.

In addition, the development drilling and production has revealed a significant increase in gas and oil reserves from the predevelopment estimates, justifying additional development wells in 2008.

BMG JV reported that production from the Basker and Manta Oil fields has been maintained at rates between 12,000 and 14,000 bbl/d, averaging approximately 12,500 bbl/d since production was restored on Nov. 22.

At the end of November 2007, the BMG JV delivered a crude oil cargo of 344,000 barrels to the Shell Geelong refinery. Once again the high quality of the crude resulted in an average load price slightly below U.S. $100 per barrel. This provided a net total of U.S. $34.1 million to the JV participants.

In early February 2008, the Ocean Patriot is scheduled to begin drilling Basker-6, which will target the expanded area of the field to the southeast. The well may be connected to the existing facilities within a few months after completion. Further drilling using the Kan Tan 4 on Basker-7, -8 and Manta-3 is planned for the third quarter of 2008.

Beach Petroleum Limited, Anzon Australia Limited, and CIECO Exploration and Production are all participants in the Basker-Manta Joint Venture.