Oil and gas group Melrose Resources has cut its full-year production guidance by 8% after disappointments at two of its Egyptian wells.The firm now expects to produce 40.5 thousand barrels of oil equivalents per day (Mboepd) in 2011, down from its previous guidance of 44 Mboepd.The North East Abu Zahra-1 gas well experienced "water breakthrough" back in December, and the group saw the well rate decline rapidly until it ceased to flow last month."The company now plans to drill a replacement production well in the field at the crest of the structure after completing the current West Dikirnis horizontal well. This will result in the deferral of production but has no implications with respect to the field reserves," the group said.Meanwhile, its two Bulgarian gas fields, Kaliakra and Kavarna, have continued to show good production and are producing at a combined rate of 46 million cubic feet per day.The ultimate proved plus probable reserves estimate at its Kavarna field in Bulgaria has been raised from 25 billion cubic feet of gas (Bcf) to 27Bcf.---BC