Directors of castle energy recommend acceptance of anzoil's offer

Today Anzoil NL ("Anzoil") dispatched an offer for all the outstanding shares in Castle Energy NL ("Castle") accompanied by a recommendation from Castle Directors to accept the offer. Anzoil is offering one Anzoil share for every fully paid Castle share (25 million).

The proposed acquisition is subject to the approval of Anzoil shareholders. A meeting of shareholders will be convened for this purpose and also to approve a "share-for equity" swap with its major shareholder Maurel & Prom (M&P). It is proposed that the Anzoil shares held by M&P (11.187 million shares) will be acquired by the Company and cancelled, in exchange for M&P getting an additional 15% equity interest in the Hanoi Basin PSC. After the cancellation of the shares held by M&P and the full acquisition of Castle, the number of Anzoil shares will increase from about 61 million to approximately 75 million.

Anzoil is currently completing a full legal, technical and commercial due diligence in relation to the Lembak LPG Project and Castle. Negotiations with potential LPG purchasers and project financiers of international standing are progressing. The Lembak LPG project is expected to receive the final go-ahead by the end of August 2000. (*)

If you require further information please contact Mr Frank Jacobs or Mr Edward Munks on 08 9325 8777.

Dr Jaap Poll

Executive Chairman

Manager Companies

Australian Stock Exchange Limited

10th Floor

20 Bond Street

SYDNEY NSW 2000

CC: Market Information Services Section

New Zealand Stock Exchange

Fax: 0015 64 4 473 1470