Management Resource Solutions Regulatory News (MRS)

7 Dec 2007 11:16

Melrose Resources PLC07 December 2007 FOR IMMEDIATE RELEASE 7 December 2007 MELROSE RESOURCES PLC ("Melrose" or "the Company") Bulgaria update Melrose Resources plc (LSE:MRS), the oil and gas exploration, development andproduction company, today provides an update on its operational activities inBulgaria. On 6 December 2007, the Bulgarian Government announced that it has grantedMelrose exploration rights to Block Galata, an exploration concession whichsurrounds the Melrose operated Galata producing gas field. Following theformalisation of the concession award, the Company expects to reduce its workinginterest in the Block to around 60% in order to share the exploration drillingrisks and costs. Block Galata is prospective in a number of geologic horizons and contains threegas prospects in the same Paleocene formation as the Galata field reservoir.These three prospects have a combined unrisked reserves potential ofapproximately 100 billion cubic feet and are medium risk. In light of the concession grant, Melrose will now use the Southern Crosssemi-submersible rig to complete the drilling of a Paleocene prospect in BlockGalata called Kaliakra. This follows the successful completion of an appraisalwell in the eastern fault block of the Galata gas field which has providedreservoir pressure and deliverability data required for the ongoing Galata fieldgas storage feasibility study. The appraisal well has been suspended forpossible future use in the gas storage project. The Kaliakra prospect is located approximately 15 kilometres east of the Galataplatform and has unrisked reserves potential of 68 billion cubic feet and achance of success of 35%. In the event of exploration success, a discovery couldbe rapidly tied back to the Galata platform where there is spare processing andtransportation capacity.Commenting on the above, David Thomas, Chief Executive, said: "We are very pleased with the outcome of our discussions with the Bulgarianauthorities regarding the Galata exploration concession. We are now wellpositioned to pursue our further shallow water exploration plans in the areaand, in particular, to drill the Kaliakra prospect which we view as a key wellto test the remaining Paleocene potential in the Block." For further information please visit www.melroseresources.com or contact: Melrose Resources plc 0131 221 3360David Thomas, Chief ExecutiveRobert Adair, Executive ChairmanMunro Sutherland, Finance Director Buchanan Communications 0207 466 5000Tim ThompsonBen Willey This information is provided by RNS The company news service from the London Stock Exchange