The company did not outline the reasons for the budget blow-out in its 2005 financial results, but added that the drilling and full field production schedule and estimated production rates were still in line with reported estimates.

Anzon also announced revenue totalling $31.8 million, largely due to the sale of a 25% stake in the BMG joint venture to Beach Petroleum. Anzon and Beach are now 50:50 partners in the project.

However, this revenue does not include Anzon’s share of 136,289 barrels of oil produced in December, which was accounted for as inventory and subsequently sold for $US8.8 million ($A11.8 million) in January.

Other 2005 highlights for the company included successfully drilling the Basker-2 appraisal well, which provided the initial production for the extended production test and has produced a total of 548,000 barrels to date at around 5900 barrels per day.

An independent assessment also increased the proved plus probable (2P) reserves of the Basker-Manta oil fields to 30.1 million barrels of oil, with Anzon’s 50% share totalling 15.0 million barrels.

Since listing in December 2004, the company’s share price has increased 111% to $1.32 when trading opened today.

“This strong result establishes a solid financial foundation for the company in its first year, together with the high revenue and earnings outlook for 2006, which provides the financial platform for significant growth activities,” Anzon managing director Tony J Strasser said.

“The company is now in an excellent position to take advantage of opportunities in the oil and gas sector in Australasia.”