Management Resource Solutions Regulatory News (MRS)

27 Feb 2007 07:04

Melrose Resources PLC27 February 2007 FOR IMMEDIATE RELEASE27th February 2007 MELROSE RESOURCES PLC Operating update Melrose Resources plc (LSE: MRS), the exploration and production company withinterests in Egypt, Bulgaria, France and the USA, today gives the followingupdate. In Egypt, the West Dikirnis No.7 appraisal well was drilled as a step-out wellon the northern flank of the West Dikirnis field. As previously reported, thiswell intersected a net oil column of around 40ft which was above expectationsand which should confirm an increase in proven reserves for the field. The wellhas now been successfully tested. Four flow periods of increasing choke sizeswere carried out and a maximum oil rate of 2,002 bopd was achieved on a 28/64thchoke at a well head pressure of 1,995 psi. The well will be temporarily shut-inas a planned producer with first production being targeted for the third quarterof this year. The rig has been released to move on to the West Dikirnis No.3development well. On the Rhone Maritime permit offshore France, oil seep analysis is now plannedwith the objective of reducing the exploration risk with a view to seeking afarm-out partner later in the year. Seabed coring may also be considered. In the USA, a review of the geology and geophysics of the East Texas propertiesacquired in the Merlon acquisition has yielded some encouraging results.Several leads and prospects have been identified and two prospects of 25 Bcf and42 Bcf have been selected and are likely to be drilled in 2007. An appraisalwell close to existing production may also be drilled. Commenting on this, Robert Adair, Executive Chairman, said: "The result of West Dikirnis No.7 is encouraging as it proves the presence of agood oil reservoir and confirms the extension of the field to the north towardsanother exploration target at South Zarqa. In the US, the Lake Houston projectis looking interesting and we intend to drill two or three exploration orappraisal wells there." For further information please contact: Melrose Resources plcRobert Adair , Executive Chairman 0131 221 3360Munro Sutherland, Finance Director Buchanan CommunicationsTim Thompson 0207 466 5000Ben Willey or visit www.melroseresources.com Glossary: Bcf - billion cubic feet; bopd - barrels of oil per day This information is provided by RNS The company news service from the London Stock Exchange