Management Resource Solutions Regulatory News (MRS)

21 Jan 2008 07:01

Melrose Resources PLC21 January 2008 FOR IMMEDIATE RELEASE 21 January 2008 MELROSE RESOURCES PLC Bulgarian exploration success and planned development project Melrose Resources plc (LSE: MRS) ("Melrose") today is pleased to announce theresults of recent exploration drilling and a planned development project inBulgaria. Following the announcement of the award to Melrose of the Block Galataexploration concession, Melrose has drilled the Galata E3 - Kaliakra explorationwell using the Atwood Cross drilling rig. The well was drilled to test astructural feature similar to that at the nearby Galata gas field, with the mainreservoir target in a Palaeocene-aged formation. The well intersected the topreservoir at a measured depth of 2743 feet and found a gross hydrocarbon columnof 46 feet. Open hole log data indicates a net pay interval of 33 feet with anaverage porosity of 31% and high gas saturations. Due to the high quality of thereservoir, flow testing was not required and the well has been suspended for useas a production well. Plans are now being formulated for the development of the field using a subseacompletion and tying the well back approximately 15 kilometres to the Galataplatform production facilities. The objective is to achieve production from thewell no later than mid 2009. Based on the open log data, the reserves in the immediate vicinity of the wellare estimated at 7 billion cubic feet ("Bcf") and there is additional upside inthe field of over 40 Bcf if a shale-filled channel to the east of the structureacts as an effective seal. Based on seismic mapping and regional analogues, theestimated chance of success for the upside reserves case is 50%. The total fieldsize will become clear after a period of production. Further explorationpotential also exists on trend with the discovery in three structural prospectswhich have combined unrisked reserves of 31 Bcf with an average chance ofsuccess of 45%. As mentioned in the previous press release dated 7 December 2007, Melroseexpects to reduce its working interest in the Block Galata to around 60%. Commenting on this, David Thomas, Chief Executive, said: "We are very pleased to have made a new shallow water discovery in Bulgaria andto have proved up an extension to the productive Galata reservoir trend. The newflow line installation will allow us to rapidly develop the reserves using ourexisting offshore and onshore facilities and to access the economic upsidepotential in both the discovery and offsetting prospects." For further information please visit www.melroseresources.com or contact: Melrose Resources plc David Thomas, Chief Executive 0131 221 3360 Robert Adair, Executive Chairman Munro Sutherland, Finance Director Buchanan Communications Tim Thompson 0207 466 5000 Ben Willey This information is provided by RNS The company news service from the London Stock Exchange