Australian energy companies Anzon Australia Ltd. and Nexas Energy Ltd. have cancelled their merger announced at the new year, the chief executives of the companies said in a joint declaration Monday.

Nexus Managing Director said the Basker 6 and Basker ST1 drilling changed the merger dynamic, and “as a result” could not agree to “revised merger terms”. Anzon and partners decided in mid-April to fast-track the Basker STI well to the Basker Manta project’s 10,000 barrels of oil per day.

“Nexus will continue to operate as a stand alone entity”, Tchacos said in a statement, adding that he would focus on a drillling campaign highlighted by the Libra-1 well near the Crux discovery.

Anzon Australia boss, Andrew Young, cofirmed the recent Basker well had divided the two.

“Anzon Australia and Nexus have been unable to agree on the impact the Basker 6 and Basker 6 ST1 drilling programs have had on Anzon Australia’s Basker oil field and therefore have not been able to agree on appropriate terms to allow the Merger to proceed,” Young was quoted as saying.

The decision has been “mutually agreed” and would not affect either company financially.

Young said Anzon would now focus on a floating-production development set planned for 2010.