Nexus and Anzon bin merger

Anzon Australia and compatriot Nexus Energy have cancelled a proposed merger after failing to agree on the impact on reserves of Anzon’s Basker-6 drilling program in the Bass strait off Victoria.

Industry sources said Anzon had disagreed with attempts by Nexus to revise the terms of the merger following the disappointing results of the Basker-6 campaign. The decision was mutual and will be effected at no cost to either party, said Anzon. “There has been speculation suggesting a reserves downgrade of 40% was possible, but I think this is too much and there has been no guidance given by either Nexus or Anzon,” said Perth-based analyst Richard Quin of Wood Mackenzie. “Whatever the result, Nexus and Anzon obviously didn’t agree in their interpretation of the well and things went sour,” he added. Anzon is the operator of the Basker-Manta oil project, which produces 4600 barrels per day of oil net to Anzon. The project, off south-eastern Australia, has estimated proved and probable reserves of about 40 million barrels of oil, 10.15 billion cubic metres of gas and around 90 million barrels of condensate. First oil from the Basker-6 sidetrack is planned in July this year and is expected to boost output from the project’s current production of about 10,000 barrels per day. Anzon holds 50% of the Basker-Manta joint venture, with partner Beach Petroleum on a 30% stake, CIECO Exploration & Production on 10% and Sojitz Energy with the remaining 10%. Nexus, who said it would buy Anzon for A$650 million (US$565 million) in late January, said it would continue to develop its interests in the Bass Strait area independently.

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