up 9% buyers drying up, page-8

afr article This from this mornings AFR article OIL MINNOW PROVE TO BE A FINE CATCH

.....Anzon energy listed on the Australian Stock Exchange in December 2004. Since then, its shares have tripled from issue price of 40c. On Tuesday, the stock closed at $1.27. Even after the share prise rise, the shares are trading on a P/E ratio of less than 3.8 times prospective 2006 earnings.

Anzon is one of broker BBY's top picks in the energy sector, even though the company has just the one asset - the Basker Manta Gummy project in the bass strait.

BBY believes Anzon has the financial flexibility to expand its portfolio through the aquisition of exploration or production assets in Australasia.

Exec Chairman Steve Koroknay says he is keen to put to work the company's substantial cashflow, which has been enhanced by the sale of 12.5% to BPT.

Operating cash flow from BMG in 2006 & 2007 is forcast to be $195m & $131m.

Anzon has hedged half its production to October 2007 at US$55 per barrell. While this does not give Anzon the full exposure to current prices it does offer a degree of stability, which is important as it is yet to prove itself.

Funds management company Eley Griffiths says Anzon is undervalued with Anzon, Arc & AWE as its core holdings.