Management Resource Solutions Regulatory News (MRS)

29 Jul 2005 07:01

Melrose Resources PLC29 July 2005 FOR IMMEDIATE RELEASE 29 JULY 2005 MELROSE RESOURCES PLC Operations Update - Egypt Melrose Resources plc today announces the results of the latest wells to bedrilled in Egypt. Three have been successfully drilled and tested and all willbe put on production. The South Mansoura No.2 well was drilled to test the extent of the producingSouth Mansoura No.1 structure and also a deeper Pliocene seismic bright spot.The deeper interval was encountered between 6,094 and 6,130 ft and an 8 ftinterval was perforated. The well flowed at 9.6 MMcfpd on a 24/64th choke with aflowing well head pressure of 2,406 psi. The ECDC 1 rig will now move to drillthe El Tamad No.2 appraisal well. The El Tamad discovery well drilled earlier inthe year, in the Sidi Salim formation, flowed at over 2,000 bopd and 1.5 MMcfpdand is the first black oil discovery in the Nile Delta. The South Mansoura No.6 well was drilled to test targets at both the Abu Madiand Pliocene levels. An Abu Madi reservoir interval was encountered between8,000 ft and 8,050 ft but the reservoir quality was relatively poor so thisinterval was not completed. A good Pliocene interval was encountered between3,970 and 4,020 ft and a 35 ft interval was perforated. The well flowed at 5.4MMcfpd on a 24/64th choke with a flowing well head pressure of 1,588 psi. The South Batra No.21 well was drilled to test the main Abu Madi Level II targetand a deeper horizon, thought to be Sidi Salim. The Abu Madi came in on depthfrom 9,461 to 9,505 ft and, while drilling ahead to the deeper target, apressure of approximately 6,500 psi was encountered, along with very high gaslevels. The well was plugged back and the Abu Madi cased to enable the deeperinterval to be re-drilled and tested. This over-pressured interval from 9,880 to9,920 ft was perforated but did not flow and it is thought that sensitive clayminerals may have reacted during drilling to damage the formation. Evaluation ofthis interval will continue. The Abu Madi interval was perforated between 9,462and 9,480 ft and flowed at 14.2 MMcfpd and 124 bcpd on a 24/64th choke with aflowing well head pressure of 3,126 psi. The PD 104 rig will now move to drillthe Kafr el Zahayra prospect which is a potentially very large Pliocenestructure located in the central part of the El Mansoura Concession with mostlikely GIIP of approximately 280 Bcf. Commenting on this, Robert Adair, Chairman, said: "We are very pleased with the latest drilling results from Egypt and lookforward to the results of the El Tamad appraisal well and the Kafr El Zahayraexploration well which will test two new plays. The outcomes of these two wellscould have great significance for the Egyptian operations. The timing of ourBulgarian drilling schedule is now firming up and we expect to spud the GalataEast appraisal well during the third week in August. This will be followed byone exploration well. We are looking forward to a very active second half of theyear with a number of exciting wells scheduled." 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 Communications Ben Willey 0207 466 5000 or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange