Management Resource Solutions Regulatory News (MRS)

4 Nov 2005 07:00

Melrose Resources PLC04 November 2005 FOR IMMEDIATE RELEASE 4 November 2005 MELROSE RESOURCES PLC Drilling Update Melrose Resources plc today announces the results of recent drilling activity inBulgaria. The Samotino No.1 well on Block Kaliakra 99 was spudded on 5th October anddrilled to a depth of 1,870m. Hydrocarbon shows were encountered in a number ofgood potential reservoir sand sections throughout the Oligocene horizon whichwas the main target. Seal was identified as the main pre-drill risk and it isclear that hydrocarbons had migrated through the section but had not beentrapped. The well will be plugged and abandoned. The rig will now be moved to the Samotino No.2 location to the south. This wellwill test an Eocene channel sequence offsetting the Samotino More well, drilledby a previous Operator in 1986, which tested gas and condensate. Commenting on this, Robert Adair, Chairman, said: "This well has implications for the prospectivity of the Oligocene in this areaand the analyses and integration of the data from this well will take time.Targeting stratigraphic trapping mechanisms carries higher levels of risk andthere is much to learn from this result. Our near term drilling efforts will nowbe concentrated on the other play types in Blocks Kaliakra 99, Emine andRezovska. The Samotino No.2 well will be testing a different play type althoughthis will have a similar risk (1:6 probability of success) to the Samotino No.1test." Note Melrose has 100% ownership of Blocks Kaliakra 99, Emine and Rezovska, offshoreBulgaria; For further information please contact: Melrose Resources plc Robert 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 CommunicationsBen Willey 0207 466 5000 or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange