"The results of the evaluation indicate that the sands are generally thicker than had previously been seen in Basker-1, 2, 3, 4 and 5, however the well's objectives were approximately 40 metres low to prognosis and all sands encountered were intersected below their individual sand current hydrocarbon-water contacts," the company said.

But pressure data indicates these sands are communicating with Basker producing wells and the structural information gained gives a clearer picture of the hydrocarbon accumulation in this area, according to Anzon.

"Accordingly, a decision has been made to sidetrack the well to a location approximately 500 metres northeast of the current bottom-hole position and

approximately 1km southeast of the Basker-3 producing well," the company said.

The rig is preparing to plug back and drill to this location.

This conventional, low-angle sidetrack is expected to take 10-15 days and is planned to develop the complex fluvial sands of the southeastern extension of the Basker field.

The participants in the Basker-Manta Joint Venture are Anzon Australia (operator and 40%), Beach Petroleum (40%) and CIECO (an Itochu subsidiary - 20%).

Beach is moving to complete the sale of 10% of Basker-Manta to Japanese company Sojitz.