Management Resource Solutions Regulatory News (MRS)

3 May 2007 09:07

Melrose Resources PLC03 May 2007 Immediate Release 3 May 2007 MELROSE RESOURCES PLC Drilling update in Egypt Melrose Resources plc (LSE:MRS), the exploration, development and productioncompany today provides an update on the results of its continuing drillingprogramme in Egypt. As announced on 3 April, after establishing the down-dip limits of the field onthe western flank of the field, the West Khilala No.6 well was sidetracked to alocation 30ft up-dip of the original well. The West Khilala No. 6 ST was loggedwith final results indicating a gross vertical pay interval of 68 ft with a highnet to gross ratio. The well was tested over a 22 ft interval and flowed at 9.2MMcfpd on a 20/64" choke. The well was put on production on 1st May 2007 and theWest Khilala Field is currently producing at a total of 84.4 MMcfpd. The rig hasmoved and is now drilling the West Khilala No. 5 development location in thenorth-west area of the field. Also as previously announced, the West Dikirnis No.3 development well wasdrilled in the central part of the field as an oil producer. The wellsuccessfully intersected a 40 ft gross oil column with 37.4ft of net pay in theQawasim formation. This well has now been flow tested over a 27 ft interval andflowed oil at 4,320 bopd with gas rates of 7 MMcfpd through a 42/64" choke. Therig has moved to drill the West Dikirnis No.9 deviated well as an oil producerin the central-eastern area of the field. Commenting on this, Robert Adair, Executive Chairman, said: "The test results of these wells are in line with expectations and productionfrom the West Khilala field continues to be impressive. The West Dikirnis fielddevelopment is on track for first production which is scheduled for the end ofSeptember." For further information please contact: Melrose Resources plc 0131 221 3360Robert Adair, Executive ChairmanMunro Sutherland, Finance Director Buchanan Communications 0207 466 5000Tim Thompson / Nick Melson or visit www.melroseresources.com Glossary:bopd - barrels of oil per dayMMcfpd - million cubic feet per day This information is provided by RNS The company news service from the London Stock Exchange