Management Resource Solutions Regulatory News (MRS)

22 May 2007 09:56

Melrose Resources PLC22 May 2007 Immediate Release 22 May 2007 MELROSE RESOURCES PLC Drilling update in Bulgaria Melrose Resources plc (LSE:MRS), the exploration, development and productioncompany today provides an update on the results of its continuing drillingprogramme in the Black Sea, offshore Bulgaria. The Ropotamo No.1 exploration well reached a total depth of 1,837m in LowerEocene sandstones on 6 May 2007. High gas shows were reported during drilling ina Lower Pliocene to Miocene aged sequence between 750m and 825m. The well took asubstantial kick while drilling at 813m and wireline logs indicated a potentialreservoir sequence of thin interbedded clastics and porous dolomites in thissequence. An open hole inflow test was conducted over the interval from 750m to920m and the well flowed both gas and water at steady flow rates ofapproximately 40 Mcfpd and 2,200 bpd respectively on a 32/64" choke. A secondopen hole inflow test was conducted over an interval from 750m to 797m in anattempt to isolate the gas from the underlying water. No formation fluids wereflowed during this test and analysis of the test results is ongoing. The Eocene sandstones, which formed the primary exploration target for the well,were encountered but were water wet with minor traces of dead oil. The well iscurrently being plugged and abandoned. The well results will be reviewed in themonths ahead in order to fully understand the remaining potential in the area. The semi-submersible drilling rig, the Atwood Southern Cross, will now move tothe Obzor No.1 location in Block Kaliakra 99 approximately 65 km south-east ofthe city of Varna in water depths of around 650m. The main targets in Obzor No.1are of Pliocene age and are defined by large amplitude and AVO anomalies. P50gas-in-place potential for the Obzor No.1 prospect is 158 Bcf. However, ifsuccessful, there are a large number of follow-up accumulations with a meanin-place potential of 1.0 Tcf. Commenting on this, Robert Adair, Executive Chairman, said: "The Ropotamo well was the highest risk well in our programme. While the resultis disappointing, the presence of hydrocarbons confirms the merit of drillingthe prospect. We now move to the Obzor prospect which is the closest of ourprospects to the Galata field and to the hydrocarbon-bearing channels which wehave encountered in previous drilling." For further information please contact: Melrose Resources plc 0131 221 3360Robert Adair, Executive ChairmanMunro Sutherland, Finance Director Buchanan Communications 0207 466 5000Ben WilleyNick Melson or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange