Management Resource Solutions Regulatory News (MRS)

20 Oct 2005 07:00

Melrose Resources PLC20 October 2005 FOR IMMEDIATE RELEASE 20 October 2005 MELROSE RESOURCES plc El Mansoura Concession Operating Update Melrose Resources plc today announces the results of the latest wells to bedrilled on the El Mansoura Concession in Egypt. The Abu Arida exploration well was drilled to test a Pliocene seismic anomaly inthe western area of the concession. The well was drilled to a TD of 7,135 ft anda good quality, gas filled sand was encountered between 5,080 ft and 5,110 ftwith no water contact. The well was completed and the upper 8 ft of thereservoir sand was perforated and tested at 7.5 MMcfpd on a 24/64ths choke witha well-head flowing pressure of 2,091 psi. Estimated gross reserves, asexpected, are in the range 10-15 Bcf and the well will be tied in to the SouthBilqas production facilities. The ECDC-1 rig has moved to the south of theconcession and has now spudded the Tummay exploration well. This will be thefirst of several exploration wells targeting the El Tamad oil trend. The main target of the Khilala No.1 exploration well in the north-west of theconcession was an Abu Madi Level II seismic anomaly. The well was drilled to aTD of 11,250 ft and good gas shows were encountered in the main target and in adeeper horizon. Logs over the Abu Madi interval indicate a gross gas filledinterval from 9,924 ft to 10,046 ft with no water contact and with the mainclean sand interval from 9,951 to 10,046 ft. The top unconventional reservoirsection from 9,924 ft to 9,950 ft will be perforated and tested first beforetesting the main pay section. Preliminary gross reserve estimates in the AbuMadi are in the range 80-150 Bcf. Swelling shales made it impossible to log thehole below 10,550 ft to evaluate the gas shows seen in the deeper horizon. Anappraisal well on the Abu Madi structure is now being planned using the samePD-104 rig and every effort will be made to evaluate the deeper anomaly in thisfollow-up well. The EDC-09 rig has returned to El Mansoura and has spudded the South Batra No.22appraisal well. This will test the western Abu Madi channel system where theSouth Batra No.4 and No.7 wells are already producing. The well has alreadydrilled through most of the Pliocene section to 8,500 ft and strong gas showswere encountered from 6,600 to 6,700 ft in the Mansouriya Channel equivalentinterval. This Pliocene horizon will be cased prior to drilling the potentialAbu Madi reservoir section. Commenting on this, Robert Adair, Chairman, said: "The Pliocene section in the El Mansoura Concession continues to provide us witha very high drilling success rate and the Abu Arida and South Batra No.22 wellsare solid results for us. We are particularly pleased with the success of theKhilala No.1 exploration well where we have encountered the best Abu Madi sandsto date and the full section is gas filled. Appraising this structure is a highpriority and we are also very keen to evaluate the potential of the deeperseismic anomaly. With further wells also planned in the El Tamad oil trend wehave an exciting drilling programme ahead." For further information please contact: Melrose Resources plcRobert Adair , Chairman 0184 553 7037David Curry, Chief Executive 0131 221 3360Munro Sutherland, Finance Director 0131 221 3360Chris Thomas, Corporate Development Director 0207 462 1603 Buchanan CommunicationsTim Thompson 0207 466 5000Ben Willey or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange