AZA Review of BMG Reserves Consistent with ROC's View
21 AUG 08
On 16 June 2008, ROC announced its proposed merger with Anzon Energy Limited ("AEL") and its off-market takeover offer for Anzon Australia Limited ("AZA"), in which AEL has a 53% shareholding. On 7 August 2008, ROC released its Replacement Bidder's Statement in relation to the AZA Takeover Offer.
On 19 August 2008, AZA released to the market the results of an extensive review of hydrocarbon reserves for the Basker Manta Gummy (BMG) fields located in VIC/L26, VIC/L27 and VIC/L28 in the Gippsland Basin, offshore Victoria. The review, which was independently verified by Resource Investment Strategy Consultants (RISC), concluded that the remaining Proved plus Probable (2P) Reserves of the BMG fields were 74.2 MMBOE (29.7 MMBOE net to AZA) as at 30 June 2008.
The results of the AZA reserves review are consistent with ROC's assessment of the 2P Reserves for the BMG fields of 27 MMBOE net to AZA as at 1 April 2008, including best estimate gas and condensate contingent resources as detailed in the AZA Bidder’s Statement. After adjusting for differences in the date for remaining reserves estimates (30 June versus 1 April) and small differences in gas to oil conversion factors, the reported remaining reserves for the BMG fields, on a like-for-like basis, are broadly in line with ROC’s estimates.
Commenting on the AZA Reserves Report, ROC’s Acting Chief Executive Officer, Bruce Clement said:
"The report confirms ROC’s own assessment of the 2P Reserves for the BMG fields, which formed the basis for ROC’s takeover offer for AZA. Importantly, the report also identifies significant 3P Reserves upside for the fields, with the reported Possible Reserves of 92.9 MMBOE (37.2 MMBOE net to AZA) representing over 125% of the 2P Reserves. A significant part of this upside potential will be tested with development drilling that is scheduled to be undertaken over the next 18 months."
For further information see: Stock Exchange Release 21.08.08