The company today reported a pre-tax profit for the year ended December 31, 2006, of $21.2 million, up from the $20.08 million in the previous corresponding period.
Total revenue climbed to $48.5 million, up from nil a year ago. Anzon said this rise was mainly due to its 50% stake in oil sales from the Basker-Manta oil fields in the Bass Strait. Joint venture partner Beach Petroleum holds the remaining 50%.
“This strong profit result provides for a solid financial stepping stone for the company for further significant growth activities,” the company said.
“Anzon has confirmed its role in the Australian oil and gas sector as one of the leading oil-producing companies in Australia.
“Anzon is ready to capitalise on its operational and corporate success, during 2007.”
Throughout 2006, the JV completed the development of the Basker-Manta project, successfully drilling the Basker-3, 4, 5 and Manta 2A appraisal/development wells.
Full field development (FFD) production from the Basker and Manta wells began in December 2006 and the field has been producing since then.
Anzon, which operates the project, said to date, the JV has sold some 488,000 barrels of oil to Shell, providing sales revenue of about $42 million for the 2007 year.
A peak production rate of 20,000bpd has been achieved and further de-bottlenecking and optimisation activities are being performed, it said.
Anzon said after the 2006 drilling activities, additional oil reserves and “significant” contingent resources in the Basker, Manta and Gummy fields were identified.
“The additional oil reserves and the gas resource has enabled the BMG JV to progress with the integrated field development plan (IFDP), which covers the expansion of the oil project to produce the additional oil reserves, and to develop the substantial gas and condensate resources,” the company said.
The oil development expansion will involve drilling up to three additional wells and installing additional subsea equipment.
Anzon said the gas development will involve drilling gas wells at the Manta and Gummy fields, installing a gas pipeline and building a new floating production and offtake vessel. Production is expected to begin in the first half of 2009.
It said one IFDP well is scheduled to be drilled in the fourth quarter of this year, with the remainder of the drilling program in 2008.
“When the new facilities are operational in 2009, oil and condensate rates are expected to increase to a level in excess of 30,000 barrels of oil per day, “ Anzon said.
“The gas sales agreement is at an advanced stage and is expected to be executed in March 2007.”
Anzon said the overall final investment decision of the project would follow early in second quarter of 2007.
