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1 Dec 2008 07:00
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FOR IMMEDIATE RELEASE
1Β DecemberΒ 2008
MELROSE RESOURCES PLC
Bulgarian Gas StorageΒ Project Update
Melrose Resources plcΒ (LSE: MRS) ("Melrose"Β or "the Company") the oil and gas exploration, development and production company todayΒ provides an update on itsΒ BulgarianΒ gas storage project.Β
In late 2007 MelroseΒ signedΒ a Memorandum of UnderstandingΒ with BulgargazΒ Holding EAD ("Bulgargaz"), the BulgarianΒ state-owned gas utilityΒ company,Β under which the two companies conducted aΒ joint feasibility studyΒ to evaluateΒ the conversion of the MelroseΒ operated Galata gas field into a gas storage facility.
The studyΒ concluded positively and plans areΒ beingΒ brought forwardΒ toΒ convertΒ the field to gas storage with first injection commencing in the third quarterΒ ofΒ 2009. The storage capacity will be developed inΒ phasesΒ over a three year periodΒ withΒ aΒ totalΒ capital expenditureΒ ofΒ $90 millionΒ beingΒ required to create usable storage capacity of 1.8Β billion cubic meters.
The storage project continues to receive strong support from the Bulgarian Government, which wishes toΒ supplementΒ Bulgaria's existing gas storage capacityΒ in orderΒ to ensureΒ aΒ secure and wellΒ modulated gas supplyΒ andΒ toΒ comply with current European UnionΒ guidelines.
MelroseΒ and BulgargazΒ nowΒ plan toΒ enter into a second agreement under whichΒ BulgargazΒ has the right to become an equityΒ partner in the Galata gas storage projectΒ andΒ acquireΒ up toΒ a 40% workingΒ interestΒ by contributing its proportionate share of the capital costs and cushion gas requirements. It is expected that BulgargazΒ willΒ acquire this interestΒ when first gas injection commences.Β
Commenting on thisΒ update,Β David Thomas,Β Chief Executive,Β said:
"This isΒ aΒ very positive development forΒ theΒ Galata gasΒ storage project.Β MelroseΒ and BulgargazΒ haveΒ aΒ strong, longstanding relationshipΒ and we are looking forward to working withΒ themΒ to develop aΒ fullyΒ integrated gas storage and supply system.Β TheyΒ haveΒ a great depth of experience in theΒ BulgarianΒ gas business and,Β as the primary initial user of the new storage facility,Β theirΒ partnershipΒ in the project will helpΒ promote andΒ maximise theΒ facility'sΒ usage."Β
For further information please contact:
|
Melrose Resources plc David Thomas, Chief Executive Robert Adair, Executive Chairman Munro Sutherland, Finance Director |
0131 221 3360 |
|
Buchanan CommunicationsΒ Ben Willey Ben Romney |
0207 466 5000 |
or visitΒ www.melroseresources.com
Disclaimer
This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil andΒ gas explorationΒ and production business. WhileΒ MelroseΒ believes the expectations reflected herein to be reasonable, the actual outcome may be materially different owing to factors either within or beyondΒ Melrose'sΒ control, and accordingly no reliance may be placed on the figures contained in such forward looking statements.Β
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