Management Resource Solutions Regulatory News (MRS)

11 Jul 2007 11:00

Melrose Resources PLC11 July 2007 Immediate Release 11 July 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 13 June 2007, the West Khilala No.5 development well wassuccessfully drilled at the northern-most extent of the field. The well wastested over two intervals, totalling 38ft, and flowed at 9.6 MMcfpd on a 20/64"choke. The well has now been suspended and will shortly be tied back forproduction. The rig has now moved to drill the West Khilala No.7 (Deep)exploration/appraisal well which is located on the south-east flank of thefield. The main objective for this well is to test an exploration prospect inthe deeper Qawasim formation, but it will also serve to delineate the edge ofthe main productive Abu Madi reservoir. The West Dikirnis No.6 well was drilled to test a separate culmination to thesouth of the main West Dikirnis field. The well intersected the top reservoirsand at 9,276 ft, which was found to be water wet. The rig has moved to drillthe West Dikirnis No.8 deviated development well as an oil producer in thecentral-eastern area of the field. Commenting on this, David Thomas, Chief Executive, said: "The test results from the West Khilala No.5 well, drilled at the northern limitof the field, are very positive since they confirm that we have good andconsistent reservoir quality across the field. The West Dikirnis No.6 well wasdrilled to delineate the southern most limits of the field and so the results,whilst disappointing, were not particularly surprising. The West Dikirnis fielddevelopment is now 75% complete and remains on track for first production at theend of the third quarter." For further information please contact: Melrose Resources plc 0131 221 3360David Thomas, Chief ExecutiveRobert Adair, Executive ChairmanMunro Sutherland, Finance Director Buchanan Communications 0207 466 5000Ben Willey / Nick Melson or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange