Anzon Energy Ltd. provides a production and exploration activities report for the second quarter ended June 30, 2008.

Oil production from the Basker and Manta fields (100%) during the second quarter averaged 7,550 barrels of oil per day, which includes scheduled maintenance downtime and logistical downtime during crude sale offtakes.

In the second quarter of 2008 the BMG Joint Venture sold approximately 567,000 barrels of crude oil, resulting in US$67 million in gross sales revenue with an average realised price of US$118 per barrel.

On 30 July 2008, total production from the Basker-Manta fields exceeded 5 million barrels (including EPT production). Development Projects:

In July 2008, the Basker Manta Gummy (BMG) Joint Venture (JV) announced its intent to move forward on a major expansion of its Oil & Gas Development in the Gippsland Basin (Vic L26, L27 and L 28).

In July the BMG JV signed a Letter Of Intent (LOI) with BW Offshore AS (BWO) for the design, conversion, installation and operation of a purpose built Floating Production Storage and Offloading vessel (FPSO) of Suezmax size (850,000 barrels), which will have the capability to handle higher oil, water and gas rates than the present Crystal Ocean and Basker Spirit system.

The BMG JV entered into a LOI to contract the semi-submersible drilling rig Songa Venus for commencement of drilling in Dec this year for between 120 to 150 days.

As at July 29, the installation of the flowline to connect Basker 6st to the Basker manifold has commenced. Additional production is expected from the end of August.

Tags: Anzon Energy Limited