The upgrade resulted from data relating to the successful drilling of the first development well, Basker-2, due for production system completion next week, as well as wireline logging and pressure testing.

Commissioned by Gaffney Cline & Associates (GCA), the report also increased reserves in 1P and 3P categories.

“This considerable increase in reserves is very pleasing and is consistent with experience in nearby fields producing from the Intra-Latrobe formation,” Anzon executive chairman Steven Koroknay said.

"Our aggressive approach to development is clearly justified."

The offshore installation of the flowlines and hydraulic umbilicals to operate the Basker-2 subsea well is now nearing completion.

Koroknay said production was expected to start in early November, less than 12 months since the commencement of project detail design and 11 months after the company was publicly listed.

An extended production test is planned for between next month and May 2006, at rates averaging 8000 barrels per day, said Anzon. This would enable further reservoir information gathering, while the full field development (FFD) is carried out. FFD production is expected to start in July next year to increase rates to over of 20,000 bpd.

The production system includes mini-FPSO, the Crystal Ocean, near the Basker-2 well and the shuttle tanker, Basker Spirit, connected to a disconnectable single point mooring to allow periodic shipment of crude into the marketplace, said Anzon chief operating officer Andrew Young.

“On the basis of trouble-free operations, the production system installation should be accomplished this week, which will be followed immediately with the commissioning of oil production from Basker-2,” Young said.

Participants in the Basker-Manta Joint Venture are: Anzon Australia (62.5% and operator) and Beach Petroleum (37.5%).