Kalrez director Joe Mercorella said the payment together with funding from Tulloch Lodge Ltd has given the company a much needed confidence boost. "The receipt of the December 2002 lifting cash is real shot in the arm for Kalrez shareholders," Mr Mercorella said.

Mercorella said the next Bula lifting of approximately 50,000 barrels is expected in the second half of March.

Kalrez has a 2.5% in the Seram Joint Venture that operates the Oseil oilfield in Indonesia. Production is currently taking place at a temporary facility, but Kalrez hopes to have a permanent facility established by the end of April.