The stock opened at 54 cents and went as high as 55 cents before closing at 52 cents with 14.47 million shares changing hands over the course of the day.

Anzon raised $45 million through the issue of 112.5 million shares at 40 cents each, underwritten by Euroz Securities. Beach Petroleum took 30.6 million shares – a 9.7% stake.

Anzon was set up in December 2003 to build a portfolio of oil and gas fields in the offshore Gippsland Basin.

According to its prospectus, the funds would largely be used to develop the Basker and Manta oil fields. These were expected to produce an initial 20,000 barrels of oil a day from 2006.

Revenue from these oil fields would then be used to develop the Manta and Gummy gas fields.

"The defined reserves base in the Gippsland Basin Retention Leases positions Anzon Australia as a medium-size player in the Australian upstream oil and gas industry," chief executive Steven Koroknay said in the prospectus.

While Anzon will initially focus on the Gippsland Basin, it intends to acquire more acreages in Australia and South East Asia and to retain a significant equity interest in future ventures, Koroknay said.