Management Resource Solutions Regulatory News (MRS)

18 Mar 2008 07:01

Melrose Resources PLC18 March 2008 FOR IMMEDIATE RELEASE 18 March 2008 MELROSE RESOURCES PLC ("Melrose" or "the Company") Preliminary Announcement of Results for the year ended 31 December 2007 Melrose Resources plc (LSE: MRS) the oil and gas exploration, development andproduction company with interests in Egypt, Bulgaria, the United States ofAmerica, France and Turkey, today announces its preliminary results for the yearended 31 December 2007. 2007 HIGHLIGHTS Financial Highlights • 36% increase in turnover to US$158.1 million (2006: US$116.3 million) • 36% increase in EBITDAX to US$120.6 million (2006: US$88.6 million) • Loss from operations of US$14.0 million (2006: profit of US$37.5 million) after unsuccessful exploration costs of $60.9 million (2006: $8.3 million) • Loss after tax for the year of US$63.2 million (2006: profit of US$41,000) • Proposed dividend increased by 20% to 2.1p per share (2006: 1.75p) • Share issue in March 2007 raised net proceeds of US$51.2 million Operational Highlights • 18% increase in average daily net production to 15,015 boepd (2006: 12,731 boepd) • West Khilala gas field in Egypt brought on production on 5 February 2007 • West Dikirnis oil field in Egypt brought on production on 30 November 2007 • Net entitlement reserves at the year end of 322 Bcfe (2006: 367 Bcfe) • Five exploration discoveries (3 Egypt, 1 Bulgaria, l USA) • Re-award of Galata exploration concession, offshore Bulgaria • Acquisition of exploration concessions in Upper Egypt (Mesaha) and Turkey (South Mardin) Commenting on this, Robert Adair, Executive Chairman, stated: "2007 proved to be a year of significant development and growth for Melrose.During the year we successfully brought on stream two major new Melrose-operateddevelopments in Egypt, the West Khilala and West Dikirnis fields, and ourproduction rose by 18% compared with 2006. A further increase of approximately30% is forecast for 2008 and this will transform the Company's cash and earningsgeneration over forthcoming years. Our deep-water exploration programme in Bulgaria gave some disappointing resultsearly in the year, resulting in unusually high but non-recurring explorationcost write-downs. We regained our positive momentum in the second half of theyear when we made exploration discoveries in Egypt, Bulgaria and the UnitedStates. We are also looking forward to exploring the new frontier concessions inUpper Egypt and Turkey which we acquired during the year. Melrose has an experienced team, a balanced asset portfolio and the financing inplace to pursue an ambitious exploration and development programme. This is asolid platform for growth and I was very pleased to see us move into the FTSE250 index this month in recognition of the value being generated for theCompany's shareholders." For further information please contact: Melrose Resources plcDavid Thomas, Chief Executive 0131 221 3360 or 07799 061171Robert Adair, Executive ChairmanMunro Sutherland, Finance Director Buchanan CommunicationsBen Willey 0207 466 5000Nick Melson or visit www.melroseresources.com Chairman's Statement 2007 was a year of development and growth for Melrose. During the past 12 monthswe completed the integration of Merlon Petroleum into our business, brought twomajor new fields on stream in Egypt and had exploration successes in Egypt,Bulgaria and the USA. From this platform we will continue to build the business,with the aim of becoming a significant oil and gas exploration, development andproduction company. Production The Company's production volumes increased significantly in 2007 and our netentitlement production averaged 15,015 boepd during the year, representing an18% increase over 2006. Production has continued to rise and by the end ofFebruary 2008 it had reached 18,721 boepd, of which 71% was gas and 29% was oiland condensate. The production increase is mainly due to contributions from the West Khilala andWest Dikirnis fields in Egypt, which were brought on stream during 2007. Boththe fields were fast track developments and came on production within 18 monthsof discovery. To achieve this, the appraisal and development drilling programmeon the fields was conducted in parallel with the production facilitiesprocurement. This required close co-operation between our operating and projectteams in Egypt and our staff in Edinburgh and Bulgaria to optimise the projectdesign, procurement, installation and commissioning processes. I would like tocommend all those involved for the professionalism and the strong spirit of teamwork which they demonstrated throughout this period. In Egypt, the proved and probable reserves in these new fields and our otherassets should give us a steady working interest production profile of around 200MMcfepd for the next four years. Additional exploration has the potential toincrease our production further. In Bulgaria the mature Galata gas field continued to give consistent performancewith production declining in line with expectations. We are looking closely atoptions for the conversion of this field to a gas storage facility. In additionin Bulgaria, we were delighted to report in early 2008 that an exploration welldrilled 15 km to the east of the Galata platform had been successful and we arealready moving forward with plans for the development of the new Kaliakra fielddiscovery. In the United States, production from our mature oil and gas fields wasrelatively steady and benefited from high product prices. During the year wecontinued with a programme of facilities improvements to prepare for a majorinfill drilling and waterflood programme in our Permian Basin oil fields in2008. These development projects, which are now underway, will provide furtherproduction growth over future years. Exploration Our exploration programme is central to our future success. In the first half ofthe year we experienced some disappointing exploration results in deep-waterBlack Sea, offshore Bulgaria. We then refocused our exploration efforts on theshallow-water areas in the vicinity of the Galata production platform and wereimmediately rewarded with the exploration success at Kaliakra. In Egypt,exploration drilling in the first part of the year was limited as we focussed onour field development drilling programmes. Our explorationists used this time tocontinue interpreting the 3D seismic data which we acquired in the area and togenerate a high quality exploration prospect inventory. The first results fromour new exploration drilling campaign, which commenced in August 2007, have beenpositive with three discoveries in 2007 on the Mansoura concession in theQawasim formation, which is the reservoir at the West Dikirnis oil field. Thisbodes well for the future and we expect the prospect inventory to expand furtheras we identify additional Qawasim and Abu Madi prospects and gradually move ourfocus to the under-explored deeper geologic horizons and to the South East ElMansoura concession. During the year we acquired a 40% operated working interest in the Mesahaexploration concession. This is a large frontier exploration block which islocated in Upper Egypt near the Sudanese border. The block is unexplored and ourinitial work programme will involve the acquisition of aeromagnetic and seismicdata with a view to potentially drilling a well in 2010. We have also added to our asset portfolio some new exploration acreage inTurkey, on the Syrian border. A seismic acquisition programme is currently beingdefined and a well may be drilled in the area in 2010. In France, the results offurther data gathering over our offshore Rhone Maritime concession wereencouraging and we hope to move forward with a farm-out later this year. Our review of the acreage we acquired in East Texas has generated interestingappraisal and exploration opportunities. The results of our first appraisal wellin the area, Johnson No.1, were encouraging and further exploration drilling isnow scheduled for 2008. Reserves Our net proved and probable reserves at the year end totalled 322 Bcfe on a netentitlement basis, which compares with 367 Bcfe as at 31 December 2006. Thereduction is primarily due to 2007 production (32.9 Bcfe) and field reserverevisions announced during the year (56.9 Bcfe), partially offset by reservesadditions from our exploration discoveries in Egypt and the USA (44.6 Bcfe).Reserves additions will be a key objective for the Company in 2008. Staff During the year we welcomed our new Chief Executive, David Thomas. David bringswith him many years of strategic, technical and operational experience in theoil and gas industry and he has rapidly become a very valuable member of theMelrose team. We were also pleased to announce in November that James Agnew hadagreed to join as an independent non-executive director and I am sure James'sexperience will stand us in good stead. Kelvin Hudson stepped down as anon-executive director in November and I should like to thank Kelvin for thecontribution he made during his time with us. The Melrose staff are key to our business and we have a strong team ofexperienced and committed professionals throughout the Group. As a result,Melrose is steadily gaining a reputation for technical and operationalexcellence as we continue to deliver our projects on plan, demonstrate prudentreservoir management approaches and pursue our exploration initiatives. Financial Results The loss for the year of $63.2 million reflects unsuccessful exploration costsand concession relinquishment charges primarily associated with our Bulgariandeep-water drilling programme of $60.1 million. EBITDAX for the year rose by 36%to $120.6 million reflecting increased production levels and higher oil andcondensate prices. To reflect our upward production trend and our confidence inthe Company's future outlook I am pleased to announce that we are proposing thatthe dividend for the year will be increased by 20% compared with 2006, from 1.75pence per share to 2.10 pence per share. If approved at the forthcoming AGM,this will be paid on 4 July 2008 to those shareholders on the register on 20June 2008. Outlook Melrose has assembled a balanced portfolio of assets including mature producingfields, low risk development projects and a range of diverse explorationopportunities. These assets provide a solid platform for future growth and weexpect to increase our production levels by approximately 30% in 2008 comparedwith 2007. The anticipated volume growth, coupled with an increasing exposure tointernational oil prices from our West Dikirnis oil production, will transformthe company's cash and earnings position in 2008 and beyond. We can therefore plan an ambitious exploration and development programme overthe forthcoming years and in 2008 we will be drilling some 16 exploration andappraisal wells. I am confident that we have the people, assets and financing inplace to take Melrose forward to another level. Robert F M AdairChairman17 March 2008 Financial Review Results for the year Revenue for the year was $158.2 million which compares with revenue of $116.3million in 2006. Turnover derived from Egypt was $89.1 million (2006: $29.4million), Bulgaria $42.7 million (2006: $60.5 million) and the USA $26.4 million(2006: $26.4 million). Net financing cost includes a loss of $5.0 million (2006: gain of $1.1 million)following the revaluation of options over shares in Renova Energy plc. Loss after tax amounted to $63.2 million (2006: profit of $41,000) after takinginto account a tax charge of $8.2 million (2006: $11.1 million). A final dividend of 2.1 pence (2006: 1.75 pence) per share is being proposed. Ifapproved, the estimated dividend of $4.6 million (2006: $3.9 million) will bededucted from retained reserves. EBITDAX for the year of $120.6 million compares with $88.6 million for theprevious year. The reconciliation of EBITDAX to the IFRS measure of profitbefore taxation is presented below: EBITDAX 2007 2006 $000 $000(Loss)/profit before taxation (54,996) 11,123Add back:Depreciation 805 530Depletion 71,124 40,646Decommissioning charge 1,908 1,621Unsuccessful exploration costs 60,887 8,298Net financing cost 40,918 26,392EBITDAX 120,646 88,610 Taxation The tax charge for the year was $8.2 million (2006: 11.1 million). The taxcharge is high due to the non-deductibility for tax purposes of financing costsand administrative expenses in Egypt. Similarly, administrative costs in the UK(net of intra-group management fees) are not deductible for tax purposes againstother Group income. Key Performance Indicators Five exploration wells were drilled in Egypt in 2007 of which three weresuccessful, a success rate of 60%. In the US one successful appraisal well wasdrilled. In Bulgaria, three exploration wells were drilled, none of which wassuccessful. These drilling success rates are key performance indicators of theGroup. Also important as key performance indicators are the reserves additions andreplacement statistics which are shown in the reserves table below. The tableshows that reserves added through extensions and discoveries during the yearwere 44.6 Bcf which was 136% of production. This result reflected the fact thatrelatively little exploration drilling was carried out during the year in Egypt.Downward reserves revisions during the year were 56.9 Bcfe of which 47.7 Bcfewere in Egypt. A key indicator of financial performance is EBITDAX which, as shown above, was$120.6 million for the year. This represented an increase of 36% over 2006.Other key performance indicators are the revenue, costs, profit and cash flowper unit of production and these are set out in detail below. Revenue, costs, profit and cashflow per unit of production Bulgaria Egypt USA 2007 2006 2007 2006 2007 2006 $ $ $ $ $ $Prices receivedOil/condensate (bbl) - 68.61 58.10 64.76 58.20Gas (Mcf) 4.23 3.37 2.66 2.63 7.05 6.34 Per McfeRevenue 4.23 3.37 3.68 3.51 8.71 7.96Royalties and production taxes (0.11) (0.08) - - (0.62) (0.58)Operating costs (0.33) (0.20) (0.29) (0.62) (3.09) (2.06)Net cashflow 3.79 3.09 3.39 2.89 5.00 5.32Depletion (2.04) (1.43) (2.18) (1.31) (2.44) (1.92)Abandonment (0.07) (0.08) - - (0.06) (0.07)Net profit 1.68 1.58 1.21 1.58 2.50 3.33 Additions to the oil and gas assets of the Group during the year totalled $160.5million (2006: $115.3 million). This was split, geographically, $59.8 million(2006: $16.2 million) in respect of properties in Bulgaria, $88.2 million (2006:$80.1 million) in Egypt, $11.9 million (2006: $14.8 million) in the USA, and$0.6 million (2006: $4.2 million) in France. Financial assets The Group holds options to purchase shares in Renova Energy plc which is acompany traded on AIM. Under IAS 39 these options are held at fair value. At31 December 2007 these options were held at nil fair value due to the suspensionof trading of shares in place at that time. The fair value as at 31 December2006 was $5.0 million. Financial instruments The Group's use of financial instruments is mainly restricted to borrowings,cash deposits, short-term deposits and various items such as trade debtors andtrade creditors which derive from its operations. Group policy in relation to hedging the selling price of Group production isreviewed periodically. In June 2006 the Group entered into a contract underwhich a proportion of expected Group oil production in the USA from July 2006 toDecember 2007 was hedged in a no-cost collar with the reference price of WTIcrude between $60 and $84 per bbl. There was no hedge in place as at 31 December2007. Risk management The main risks from the Group's financial instruments are interest rate risk,liquidity risk and foreign currency risk. The Group's exposure to interest raterisk derives from its borrowings which are at variable interest rates. It hasbeen the Group's policy to borrow for short term periods at variable interestrates in order to allow flexibility over early repayment of borrowings. Thispolicy exposes the Group to a risk that interest rates will rise. Groupinterest charged at variable rates in 2007 was $30.9 million (2006: $16.7million). Currency risk The Group has limited exposure to foreign currency risk as the majority of itsrevenue and expenditure is denominated in US Dollars. A limited risk arises tothe extent that overhead costs and an element of capital expenditures areincurred in currencies other than US Dollars. In order to minimize currency risk, it is Group policy that borrowings incurredin relation to development projects should be denominated in US Dollars as cashflows from the development projects are denominated in US Dollars. Similarly,it is Group policy that corporate borrowings should be denominated in USDollars. Pricing risk At this time, the Group has no long-term contracts under which the price for thesale of its production is fixed. However, gas production from developmentleases within the El Mansoura and South East El Mansoura Concessions in Egypt issold under long-term contracts under which the gas price is linked to the oilprice but with the oil price in a collar between $10 per bbl and $22 per bbl.With the oil price at its current level, the gas price is at the top of thepermitted range and is, therefore, effectively fixed. Loan facilities In October 2007 the Group increased its total corporate loan facilities from$335 million to $500 million. These loan facilities remain in place as at 31December 2007. Repayment of a $150 million short-term facility is due in October2008. The Group is currently arranging an increase in its loan facilities to atotal of $550 million with an expected final repayment date of 2014. At 31 December 2007, the Group had cash balances of approximately $22.7 millionand bank loans totalling $388.3 million. Available borrowing capacity underbank loans totalled $106.0 million. Equity financing The Company completed a placing of 7,000,000 new Ordinary Shares at 385 pence inMarch 2007 which raised net proceeds of $26.5 million. A further 349,435 newOrdinary Shares were issued following the exercise of share options. Financial Reporting The Group and the Company's financial statements have been prepared inaccordance with IFRS as adopted for use by the European Union Operational Review (continued) EGYPT In 2007 Melrose completed the development of the two largest fields discoveredto date on its onshore Nile Delta concessions in Egypt. First production wasachieved from the West Khilala gas field in February and first oil was achievedon the West Dikirnis field at the end of November. The successful completion ofthese developments as the operator and 100% working interest owner was animportant achievement for the Group and resulted in a significant increase inproduction in 2007. Further increases are anticipated in 2008 when a full yearof production will be achieved from both fields. The developments represent amajor step towards achieving Melrose's goal of establishing a balanced portfolioof exploration, development and production interests in Egypt, with all capitaland operating expenditures being financed by cash flow from operations. While the Group's primary focus in Egypt in 2007 was on the developmentprojects, Melrose also continued to pursue its medium-term exploration strategy.Technical work continued to upgrade the Company's exploration prospectportfolio, based on a major ongoing programme of seismic acquisition, processingand interpretation. Exploration drilling resumed in August and by year-end threenew Qawasim discoveries had been made on the Mansoura concession at South Zarqa,North East Abu Zahra and West Zahayra. These immediate positive results arehighly encouraging and demonstrate the merit of Melrose's exploration approachand the prospective nature of the concessions. In October Melrose added to its portfolio of interests in Egypt with the awardof a 40% operated interest in the large Mesaha concession in Upper Egypt. Production Average gross production in 2007 in Egypt was 100 MMcfpd of gas and 2,197 bpd ofoil and condensate. Net entitlement production averaged 48 MMcfpd and 1,047 bpd.Total net production for the year of 19.7 Bcfe represents an increase of 198 %compared with 2006. The majority of the increase in production was derived from the West Khilala andTamad fields. Melrose currently has seven producing fields in Egypt. Six ofthese are in the El Mansoura Concession: West Khilala, West Dikirnis, El Tamad,Tummay, South Mansoura, Salaka and South Batra. One producing field, Al Rawda,is within the South East El Mansoura Concession. El Mansoura Concession West Khilala Field This field was discovered in October 2005 and appraisal drilling continuedthrough 2006 in parallel with the implementation of the field development plan.Two wells were drilled on the field in 2007. The West Khilala No.5 developmentwell was drilled to test the northern limits of the field and West Khilala No.6completed the delineation of the field on the western flank. The positive wellresults were consistent with the mapping of the field and confirmed that goodand consistent reservoir quality was present across the field. First production from the field was achieved in early February 2007 at aninitial rate of 34 MMcfpd. The production rate quickly reached 80 MMcfpd and,with careful monitoring of well performance, the rate was gradually increased toits target plateau rate of 100 MMcfpd in January 2008. Field evaluation andreservoir modelling work indicate that the field should be capable ofmaintaining this rate until mid-2010 following which there will be a gradualdecline over the remaining field life to around 2018. Ultimate recoverableproved plus probable reserves in the field are estimated at 295 Bcfe gross. West Dikirnis Field The West Dikirnis field was originally thought to be a gas discovery when it wasfirst drilled in December 2005. However, the interpretation of the field changedmaterially in June 2006 with the drilling of the West Dikirnis No.2 well, whichencountered a sizable oil accumulation underlying the gas cap. The fielddevelopment project was approved in November 2006 and the design, procurementand installation of the production equipment continued in parallel with anappraisal and development drilling programme through 2007. In total six oilproduction wells and one gas producer (currently suspended for future use) havebeen drilled on the field which has proved to be a high quality Qawasimsandstone reservoir with good productivity. The successful development project demonstrated excellent co-operation betweenMelrose and its Egyptian joint-venture operating company, Mansoura Petroleum.Equipment including the oil storage tanks and pipelines were supplied fromwithin Egypt while other items of equipment were sourced internationally, muchof it from suppliers with whom Melrose had an existing relationship. The field will be produced in two stages: the first stage will involveproduction from the oil rim and then, when the oil is depleted, the field willbe switched to gas production from the gas cap. Oil production commenced in lateNovember 2007 and, following a programme of reservoir and well test dataacquisition, production was gradually increased to the target rate of 10,000bopd in late February 2008. The data acquired during this period will be used tohelp maximise the oil and gas recoveries from the field. The ultimate recoverable proved plus probable reserves in West Dikirnis areestimated at 20 MMbbl of oil and condensate and 129 Bcf of gas. Over the nexttwo years, Melrose plans to continue a programme of capital expenditure in thefield to maximise the production rate, deliver the proved plus probable reservesand access additional upside hydrocarbon liquids reserves of up to 5 MMbbl. Theinvestment programme will comprise three main elements including the drilling ofhorizontal production wells to maximise productivity, the re-injection of anygas produced with the oil into the gas cap to maintain reservoir pressure andthe installation of a Liquid Petroleum Gas ("LPG") recovery plant to extractextra hydrocarbon liquids from the gas and thereby increase revenues. The firsthorizontal well is scheduled to be drilled in mid-2008 while installation of thegas reinjection facilities and the LPG plant is anticipated by the secondquarter of 2009. El Tamad area: El Tamad and Tummay Production from the El Tamad oil field at the end of 2007 was at a steady rateof 1,340 bpd of oil and 1.3 MMcfpd of gas from three wells and the fieldperformance indicates some reserves upside of which may be targeted by wellsdrilled in 2008. The Tummay No.1 exploration well, drilled in 2006, was a smallPliocene discovery which was put on production in June 2007. South Mansoura area: South Mansoura and Salaka There are currently two producing wells in the South Mansoura area, SouthMansoura No.1 and Salaka No.1. South Mansoura No.1 currently produces 4.1MMcfpd. Salaka No.1, which was drilled in 2006 and encountered gas in thePliocene and gas and condensate in the Miocene (Abu Madi) interval, wasconnected to the South Mansoura production facilities and commenced productionin April 2007. The well is currently producing 5.8 MMcfpd of gas and 82 bpd ofcondensate. South Batra field The South Batra field production has now stabilised at around 4.3 MMcfpd. A fullgeological and reservoir engineering study has been conducted on the field tobetter understand the reservoir extent and characteristics and the resultsindicate that there is little remaining development potential beyond one or twolow materiality development well sidetracks. The conclusions of this study will,however, be relevant to the appraisal and development of any other similar lowrelief reservoir discoveries made in the Abu Madi horizon. South East El Mansoura Concession Al Rawda field Al Rawda No.1, drilled in 2006, was the first exploration well drilled byMelrose in the South East El Mansoura Concession. The well is located in the ElTamad geologic trend and was a gas and condensate discovery in the Sidi Salimhorizon. The well was put on production in August 2007 through a dedicatedpipeline to the South Mansoura plant and is currently producing steadily at arate of 4.7 MMcfpd of gas and 44 bpd of condensate. Exploration Following the initial exploration discoveries on Melrose's Nile Deltaconcessions in 2002 and 2003 an extensive programme of 3-D seismic acquisitionhas been implemented over the concessions. The value of the new data acquiredhas been demonstrated by the continuing high success rate achieved forexploration drilling. Melrose's teams of geologists and geophysicists based inEdinburgh and Cairo are using the seismic and well data in order to build anunderstanding of the regional geological trends and to generate an extensiveinventory of exploration prospects on its concessions. Seismic acquisition andprocessing is now complete over the whole of the Mansoura Concession and thenorthern area of South East El Mansoura. Prospect generation is continuing onthese concessions and is progressing to deeper exploration horizons. In 2008seismic acquisition will extend south to cover the South East El MansouraConcession and further acquisition is planned over the Qantara Concession. Melrose's planned 2008 exploration drilling programme in Egypt contains 14exploration wells to be drilled on the El Mansoura and South East El Mansouraconcessions. Two of these wells have been drilled resulting in one discovery inthe Abu Madi formation and one dry hole in the Qawasim. The remaining 12exploration wells will test 1 Abu Madi, 5 Qawasin, 1 Tineh and 5 Sidi Salimprospects. The combined unrisked reserves potential of these 12 prospects isestimated at 1,020 Bcf of gas and 19 MMbbl of condensate with an average chanceof success of approximately 32%. These figures assume that the prospects containgas and condensate only and there is value upside in the prospect portfolio inthe event that oil discoveries are made. Mansoura Concession exploration During 2007 a total of five exploration and appraisal wells were drilled on theMansoura concession. The West Khilala No.7 (Deep) exploration and appraisal well was drilled close tothe south-eastern limit of the West Khilala field. The well delineated theeastern limit of the Abu Madi reservoir in the West Khilala field and alsotargeted an exploration objective in the deeper Qawasim formation. The wellencountered 35 feet of gross gas bearing reservoir in the Abu Madi and confirmedthe limit of the West Khilala reservoir. The Qawasim objective was water wet andthe well was plugged and abandoned. Two exploration wells were drilled on a structural trend north of the WestDikirnis field. The South Zarqa No.1 well penetrated 56 feet of net pay in theQawasim formation and was flow tested at rate of 17.1 MMcfpd of gas and 660 bpdof condensate on a 36/64" choke. Reserves in the discovery have been estimatedat 47 Bcfe. The North East Abu Zahra No.1 well encountered 73 feet of net pay,also in the Qawasim formation, and was flow tested at a rate of 20.0 MMcfpd ofgas and 640 bpd of condensate on a 36/64" choke. This discovery extends acrossthe concession boundary to the north and unitisation discussions on the fieldhave already commenced. Reserves on Melrose's concession are estimated atapproximately 19 Bcfe and follow-on exploration potential exists in two otherprospects located in the immediate vicinity of the discovery. Plans are beingprepared for the development of both these two discoveries via a new pipeline tobe laid south to connect to the processing facilities at the South Batra plant. The Buhut No.1 exploration well drilled in the fourth quarter targeted a Qawasimprospect on the western side of the El Mansoura concession. The well encounteredgood reservoir sands with minor gas shows but was not considered to becommercially viable as a producer and has been plugged and abandoned. The West Zahayra No.1 exploration well was drilled in December to test anexploration prospect located to the north-west of the West Dikirnis oil field.The well encountered gas shows in the Qawasim formation and a 90 foot core wastaken within the reservoir section. The well was subsequently deepened and,after penetrating a high pressure sand interval, had to be sidetracked due towell control issues. The sidetrack also encountered gas shows in the Qawasim andopen hole logs indicated a gross gas column of 35 feet overlying a water leg.The well data suggest that the well has penetrated the flank of a structurewhich may contain reserves of approximately 63 Bcf in the Qawasim formation. 3Dseismic data also indicate that there is further exploration potential in theQawasim on a geologic trend to the north-east of the well location and also inthe underlying Sidi Salim formation. An appraisal well is being planned to proveup the Qawasim reserves in the up-dip area of the West Zahayra structure and totest the deeper Sidi Salim potential. During the first two months of 2008, two of the fourteen exploration wells whichMelrose plans to drill in Egypt in 2008 have been completed in the MansouraConcession. East Abu Khadra No.1 was drilled to test an Abu Madi channel sand prospect inthe northern area of the concession. The well encountered 38 feet of net pay inthe Abu Madi formation and the reserves in the discovery are estimated at 17Bcf. The well is currently being prepared for flow testing and it is then likelyto be tied back for production to Melrose's existing facilities at the SouthBilqas field, which is located approximately 7 kilometres away. The South Tarif No.1 exploration well was drilled to test a Qawasim prospect tothe east of the West Dikirnis field. The well encountered 117 gross feet of goodquality sand in the Abu Madi formation but the target Qawasim formation wasfound to be predominantly shale. The well was subsequently sidetracked and thesecond wellbore penetrated 137 gross feet of sand in the Abu Madi and 206 grossfeet of sand in a well developed Qawasim sand channel but with no commercial gasshows. The well results demonstrate the presence of significant Abu Madi andQawasim reservoir sand development in the eastern area of the Mansouraconcession and technical studies are underway to confirm the regional extent ofthe sands and identify additional prospects. South East El Mansoura and Qantara Concession exploration Melrose's major programme of 3D seismic data acquisition will continue in 2008over the Qantara and South East El Mansoura Concessions. A further 70 km2 of 3D seismic is planned over the Qantara Concession in orderto help delineate exploration prospects: one firm exploration well is planned onthe concession in 2008. Also on the Qantara Concession, a directional well fromthe Qantara No.4 well location is planned with the objective of re-establishingproduction from the original Qantara field which is currently shut- in. During 2008 it is planned to acquire new seismic data over the entire South EastEl Mansoura Concession, with approximately 700 km(2) of 3D seismic over thewestern part of the concession and 760 km of 2D seismic over the eastern half ofthe block. The 2D seismic data will initially be used to assist in identifyingacreage for relinquishment in 2008 while the 3D data will be used to define newdrilling locations. The 3D seismic data already acquired in the north-westernpart of the concession have been used to identify three exploration wells whichare included in Melrose's exploration drilling programme for 2008. Mesaha Concession The Mesaha Exploration Concession was formally awarded to Melrose and its jointventure partners on 9 October 2007 at a ceremony attended by His Excellency theMinister of Petroleum, Eng. Sameh Fahmy. The Mesaha concession is located inUpper Egypt and is bounded to the south by the Sudanese border. The concessioncovers an area of 57,000 km(2) and includes an unexplored sedimentary basin. Theconcession is frontier acreage which may hold considerable potential for thediscovery of liquid hydrocarbons. The initial exploration period on the concession is 4 years and the licence canbe extended to cover a maximum of 9 years. The initial work programme in 2008envisages the gathering and interpretation of the limited existing data over theblock and preparation for the acquisition of area seismic information to guidefuture exploration efforts. Melrose holds a 40% operated working interest in theblock. BULGARIA Production Production from the Galata gas field in 2007 was in line with expectations andcontracted sales volumes of 10.1 Bcf were achieved at an average rate of 27.7MMcfpd. Galata production supplied approximately 8% to 10% of Bulgaria'sdomestic gas consumption during the year. A second compressor unit was installed at the onshore processing plant andcommissioned in the autumn of 2007. The compressor, which has been synchronisedwith the existing production facilities, will facilitate the recovery of thefield's booked proved plus probable reserves and take the ultimate recovery toan estimated 74 Bcf. As the Galata field nears the end of its producing life, Melrose has beenadvancing plans for the conversion of the field into an offshore gas storagefacility. In October 2007, Melrose entered into an agreement with BulgargazHoldings, the Bulgarian state-owned gas utility, under which the two partieswill conduct a joint feasibility study to evaluate the options for a gas storagefacility at Galata. In further recognition of this potential, an appraisal well,Galata East No.2, was drilled in December in the eastern fault block of theGalata field which is not being directly drained by any producing wells. Thewell, which provided reservoir pressure and deliverability data required for theGalata gas storage feasibility studies, was suspended for potential use as a gasinjection/ production well as part of the gas storage scheme. Exploration 2007 was a year of mixed exploration fortunes for Melrose in Bulgaria. In thefirst half of the year, three high risk/high potential deep-water explorationwells, Izgrev, Ropotamo and Obzor, were drilled in the Bourgas Deep, Rezovskaand Kaliakra 99 blocks, respectively. All three wells encountered strong gasshows, indicating the presence of an active hydrocarbon system, but they eachpenetrated insufficient reservoir sections and were plugged and abandoned. As a result of the deep-water drilling campaign, Melrose has refocused itsexploration programme in the Black Sea on shallow-water prospectivity in thevicinity of the Galata field and has relinquished the Bourgas Deep, Rezovska andEmine blocks. In December 2007, the Bulgarian Council of Ministers confirmed the award of theBlock Galata exploration concession, which surrounds the Galata productionconcession, to Melrose for an initial three year term. Subsequently, Melrosedrilled the Kaliakra (Galata East No.3) exploration well to test a structuralfeature similar to the Galata gas field with the main reservoir target in aPaleocene formation. The well was a successful gas discovery and intersected thetop reservoir at a measured depth of 2,743 feet and found a gross hydrocarboncolumn of 46 feet. Open hole log data indicate a net pay interval of 33 feetwith an average porosity of 31% and high gas saturations. Due to the highquality of the reservoir, flow testing was not required and the well has beensuspended for use as a production well. Plans are now being formulated for the rapid development of the Kaliakra fieldusing a sub-sea completion and tying the well back approximately 15 km to theGalata field production facilities. The objective is to achieve production fromthe well no later than mid 2009. Based on the log data, the reserves in the immediate vicinity of the well areestimated at 7 Bcf and there is additional upside in the field of over 40 Bcf ifa shale-filled channel to the east of the structure acts as an effective seal.Based on seismic mapping and regional analogues, the estimated chance of successfor the upside reserves case is 50%. Further exploration upside is seen on theGalata exploration block in the same reservoir horizon, both in the immediatevicinity of the Galata field and in two possible extensions of the geologictrend to the east and the north-west. USA In the USA Melrose owns and operates mature oil production located in thePermian Basin of west Texas and east New Mexico. The three main fields, Jalmat,Turner-Gregory and Artesia, are characterised by long field lives and havesignificant development upside. In addition, as a result of the Merlon corporateacquisition in 2006, Melrose owns and operates gas production in east Texaswhich has further appraisal and exploration potential. Permian Basin The Permian Basin fields contain 10.2 MMbbl of net proved undeveloped oilreserves. The average daily production from the fields in 2007 was 1.3 MMcf ofgas and 574 bpd of oil. In order to fully develop the reserves base, Melrose is embarking on a major twoyear investment programme in the fields with an estimated capital cost ofapproximately $55 million. The programme will include the drilling of up to 120new infill wells, the conversion of over 30 wells to water injection and theinstallation of new water injection facilities and flow lines. When complete,each field will have a fully developed pattern waterflood with a well spacing ofapproximately 20 acres. It is anticipated that the fields will take around 3years to fully respond to the investment programme and by this time theproduction rate is expected to have increased to between 2,500 bopd and 3,000bopd. Development activity in 2007 focussed on the preparation of water injectioninfrastructure and ongoing maintenance of existing facilities. No new wells weredrilled during the year but a number of wells were converted to injection,recompleted or reopened for production. The infill drilling programme commencedin February 2008. Jalmat field The Jalmat Field is located in Lea County in New Mexico. During 2007 fieldfacilities were upgraded in advance of the upcoming waterflood developmentproject. This included improvements to water pump and distributioninfrastructure. Following the installation of an additional water injection lineduring the year, the field is now ready for the next stage in the waterfloodinjection program. Currently there are 125 active producers and 26 injectors onthe Jalmat Field. A complete "five spot" water injection plan has been designed for the entirefield. Implementation of this planned development commenced in February 2008 andis scheduled to complete by mid-2009. The planned activity in 2008 comprisesdrilling 9 new producing wells and 17 new water injection wells and converting20 producing wells to act as injectors. The balance of the plan rolling into2009 consists of 6 new producing wells, 20 new injection wells and 3conversions. An ongoing review process is planned to evaluate results andadjust the work plan as necessary to meet projected results. Turner - Gregory field The Turner-Gregory Unit comprises approximately 4,000 acres in Mitchell County,Texas. In 2007, 10,000 feet of injection line was installed and connected tofour injection wells. The waterflood work plan for 2008 comprises thereplacement of undersized pumping units, the upgrade of the southern tankbattery and injection capacity and the expansion and upgrading of the northernbattery and injection equipment. In 2008, 6 new producing wells and 10 waterinjection wells will be drilled and a further 9 producing wells will beconverted to injectors. Artesia field Construction of a new tank battery and injection pump station commenced in thesouthern portion of the field in December 2007 with completion due in mid-2008.When this new facility is complete the existing water source and injection lineswill be replaced and re-routed. The focus for 2008 will be to bring theinfrastructure to a point that will provide support for extensive waterinjection. The well conversion and infill drilling for this injection programmeis scheduled for 2009. Other interests Melrose's minor interests in the USA include gas production in the Fort WorthBasin and a small working interest in the offshore block Main Pass 139. Averagedaily production from these interests in 2007 totalled 0.5 MMcfpd of gas. Therewere no capital expenditures on these properties in 2007. East Texas Average net daily production from the Group's interests in East Texas for theyear ended December 31, 2007 amounted to 3.4 MMcfpd of gas and 46 barrels ofliquids per day. The two producing properties are the Rankin Field and the North Raywood fieldwhich are located in Harris and Liberty Counties, Texas, respectively. In 2007,Melrose continued with the geological and geophysical evaluation of theproperties. Upside potential has been identified both through appraisal drillingin existing field areas and in exploration targets identified in deeperhorizons. The Rankin Field, which is located about 20 miles northeast of Houston, Texas,has 5 active wells. The field area was the subject of extensive geological studyin 2007, with a number of possible appraisal well locations identified. TheJohnson No.1 appraisal well was successfully drilled in December 2007. Based onlog evaluation, the incremental gas reserves attributed to the well were 4 Bcf.A second appraisal well in the area, the Holmes No.4, is currently in theprocess of receiving regulatory approval and should spud early in the secondquarter. Evaluation of the deeper exploration potential in the Wilcox formation iscontinuing and it is expected that one exploratory well will be drilled in thesecond half of 2008. The North Raywood Field, which is located about 40 miles north-east of Houston,has 5 active producing gas wells. No capital expenditures were incurred on thisproperty in 2007. Geologic studies continue and it is likely that an explorationprospect will be brought forward for drilling later in 2008. FRANCE The Rhone Maritime Exploration Concession was renewed in November 2005 for aperiod of 5 years. The concession, which covers an area of 12,500 km2, islocated in the deep-water area of the Rhone Delta, offshore France in theMediterranean Sea. This is a high risk/high potential exploration concession and Melrose'stechnical work plan for the block is designed to reduce the risk bydemonstrating the presence of a working hydrocarbon system in the area. Thiswill require the identification of natural hydrocarbon seepages on the sea floorby analysing satellite images of repeatable oil sheens on the sea surface, andby seabed and seawater surveys. Contingent on a successful outcome to thesestudies, Melrose will then seek to divest a proportion of its 100% workinginterest in the licence and bring in an industry partner to take forwardexploration programme. A data-base of satellite images was purchased in early 2007 and this identifiedseveral possible oil seepages on the block. An offshore survey was thenconducted in October 2007 to record bathymetry data (and hence identify possiblehydrocarbon escape features on the seabed), echo-sounder data (to reveal anymigrating hydrocarbons in the sea water column) and seismic data (to recordhigh-resolution images of the near-seabed geology). The survey was curtailedprematurely due to poor weather conditions, however, sufficient data wasrecorded to correlate some of the surface seeps with probable hydrocarbon ventsat the seabed. Melrose is currently considering an extension of the survey in2008 in order to complete the data-set over the high-graded seep areas. The results of the technical studies completed on the block since 2005 have beencompiled and include a portfolio of prospects and leads at various target levelsthroughout the Concession. These data will be used in conjunction with the seepanalysis to farm-out an interest in the concession prior to acquiring seismicdata and identifying a prospect for drilling. TURKEY In September 2007, Melrose was awarded operatorship and a 75% working interestin 8 exploration concessions in the South Mardin basin in south-east Turkey,near the Syrian border. The concessions have a combined area of 3,910 km2. The concessions cover a large unexplored Palaeozoic sub-basin on the northernmargin of the Arabian Plate. The area is under-explored, although the limitedwell and seismic data which is available in the region indicates the presence ofgood sandstone reservoir sections within the Palaeozoic sequence and ofpotentially large structural closures. The concession award is for an initialperiod of 4 years which may be extended. Melrose, as operator, intends tocommence exploration activities through the acquisition of seismic andgeological data which will be thoroughly analysed with a view to selecting apotential well location for drilling in 2010 or 2011. Oil and Gas Reserves Proved and Probable Reserves - unaudited Proved and probable reserves have been estimated in accordance with thedefinitions contained in Appendix 1 of the UKLA Listing Rules. Proved and probable reserves are the estimated quantities of crude oil, naturalgas and natural gas liquids which geological, geophysical and engineering datademonstrate with a specified degree of certainty to be recoverable in futureyears from known reservoirs and which are considered commercially producible.The figures are estimated on the basis that there should be a 90% probabilitythat the actual quantity of recoverable reserves will be more than the amountestimated as proven and there should be a 50% probability that the actualquantity of recoverable reserves will be more than the amount estimated asproved and probable. Proved reserves in the USA are as evaluated by independent petroleum engineers.Proved and probable reserves in Bulgaria and Egypt and probable reserves in theUSA are directors' estimates based upon evaluations by Company employees whichhave been reviewed by independent petroleum engineers. At 31 December 2007 the Group's proved and probable reserves, calculated on anentitlement basis, comprised: Egypt Bulgaria USA Total Oil Gas Gas Oil Gas Oil Gas Mbbl MMcf MMcf Mbbl MMcf Mbbl MMcfProved developed 3,967 109,866 16,110 2,259 12,519 6,226 138,495Proved undeveloped 191 11,954 - 9,008 6,969 9,199 18,923Proved 4,158 121,820 16,110 11,267 19,488 15,425 157,418 Probable developed 455 8,532 - - - 455 8,532Probable undeveloped 4,201 31,837 - 34 3,735 4,235 35,572Probable 4,656 40,369 - 34 3,735 4,690 44,104 Developed 4,422 118,398 16,110 2,259 12,519 6,681 147,027Undeveloped 4,392 43,791 - 9,042 10,704 13,434 54,495Proved and probable 8,814 162,189 16,110 11,301 23,223 20,115 201,522 At 31 December 2007 the Group's oil and gas reserves, calculated on a workinginterest basis, were as follows: Proved and probable 23,685 555,447 16,110 11,301 23,223 34,986 594,780 Movements in the Group's proved and probable reserves during the year were asfollows: Egypt Bulgaria USA Total Oil Gas Gas Oil Gas Mbbl MMcf MMcf Mbbl MMcf Mboe MMcfe At 1 January 2007 8,124 189,188 37,211 11,658 22,305 61,232 367,397 Extensions and 2,014 32,510 - - - 7,433 44,596 discoveries Revisions (943) (42,064) (11,001) (130) 2,609 (9,483) (56,895) Production (382) (17,445) (10,100) (226) (1,690) (5,480) (32,883) At 31 December 2007 8,813 162,189 16,110 11,302 23,224 53,702 322,215 Discounted Net Present Value - unaudited The net present value, discounted at 10% per annum, of the Group's proved andprobable reserves at 31 December 2007 was as follows: Egypt Bulgaria USA Total Discounted net present value (NPV10) $000 $000 $000 $000 Proved developed 397,912 57,020 90,903 545,835Proved undeveloped 3,918 - 203,033 206,951Proved 401,830 57,020 293,936 752,786 Probable developed 35,004 - - 35,004Probable undeveloped 127,516 - 16,818 144,334Probable 162,520 - 16,818 179,338 564,350 57,020 310,754 932,124 The discounted net present value is based upon the following pricingassumptions: • USA: $70.00 per barrel of oil and $7.00 per Mcf • Bulgaria: $5.53 per Mcf • Egypt: $70.00 per barrel of oil condensate, $9.92 per Mcf (Qantara) and $2.50 and $2.65 per Mcf (El Mansoura) The discounted net present value is calculated on the basis of these commodityprices and of estimates of capital and operating costs at current prices withthe resulting net cashflows being discounted at 10% per annum. The discountednet present value is not necessarily an indication of realisable market value. Consolidated income statementfor the year ended 31 December 2007 Year ended 31 Year ended 31 December 2006 December 2007 $000 $000 Revenue 158,195 116,336 Depletion (71,124) (40,646)Decommissioning charge (1,908) (1,621)Unsuccessful exploration costs (60,887) (8,298)Other cost of sales (21,516) (17,912)Total cost of sales (155,435) (68,477) Gross profit 2,760 47,859 Administrative expenses (16,838) (10,344) (Loss)/profit from operations (14,078) 37,515 Financing income 1,463 1,892Financing costs (42,381) (28,284) (Loss)/profit before tax (54,996) 11,123 Income tax expense (8,218) (11,082) (Loss)/profit for the year (63,214) 41 (Loss)/earnings per share (cents) Basic (58.2) - Diluted (58.2) - The profit for the year is 100% attributable to equity shareholders. Note: All operations were continuing operations. At 31 December At 31 December 2007 2006 $000 $000 Non-current assetsGoodwill 66,173 66,173Intangible assets 78,568 85,701Property, plant and equipment 520,754 473,839Financial assets - 5,011Deferred tax asset 12,144 16,468 677,639 647,192Current assetsInventories 33,879 24,104Trade and other receivables 56,078 28,338Cash and cash equivalents 22,676 17,769 112,633 70,211 Total assets 790,272 717,403 Current liabilitiesBank loans (87,766) -Other loans - (3,229)Trade and other payables (30,890) (34,677)Provisions (4,201) (1,889) (122,857) (39,795) Non-current liabilitiesBank loans (294,057) (287,149)Deferred tax liability (72,229) (81,245)Provisions (20,433) (10,027) (386,719) (378,421) Total liabilities (509,576) (418,216) Net assets 280,696 299,187 Equity attributable to shareholdersIssued capital 19,925 18,502Share premium 191,945 141,629Special reserve 61,244 101,244Retained earnings 7,582 37,812 Total Equity 280,696 299,187 Consolidated cash flow statement for the year ended 31 December 2007 Year ended 31 Year ended 31 December 2006 December 2007 $000 $000 (Loss)/profit from operations (14,078) 37,515Adjustments for:Depreciation 805 530Depletion and decommissioning charge 73,032 42,267Unsuccessful exploration costs 60,887 8,298Loss on disposal of assets - 16Equity-settled share-based payment expenses 362 438Income tax charge on Egyptian revenue (16,526) (6,129) Operating cash flow before changes in working capital 104,482 82,935 Increase in inventory (11,157) (11,072)Increase in trade and other receivables (29,543) (4,393)(Decrease)/increase in trade and other payables (4,739) 36,939 Cash generated from operations 59,043 104,409 Income taxes received 3,341 - Net cash inflow from operating activities 62,384 104,409 Cash flows from investing activitiesProceeds from sale of property, plant and equipment - 150Proceeds from sale of investments - 547Interest received 908 765Acquisition of property, plant and equipment and intangibleassets (161,478) (116,276)Acquisition of subsidiary (net of cash received) - (252,340) Net cash outflow from investing activities (160,570) (367,154) Cash flows from financing activitiesProceeds from the issue of share capital 51,952 139,002Proceeds from issue of share options 571 2,126Costs of issue (784) (3,656) Net proceeds from the issue of share capital 51,739 137,472 Interest paid (31,177) (18,835)Loan arrangement fees (5,294) (13,644)Borrowings raised 154,478 448,987Repayment of borrowings (63,474) (279,919)Dividends paid (3,882) (2,222) Net cash inflow from financing activities 102,390 271,839 Net increase in cash and cash equivalents 4,204 9,094Cash and cash equivalents at start of period 17,769 7,965Effect of exchange rate fluctuation on cash held 703 710 Cash and cash equivalents at end of period 22,676 17,769 Notes to the financial information 1. Basis of preparation The preliminary financial information has been prepared on the basis of theaccounting policies set out in the most recent set of financial statements forthe year ended 31 December 2006. These policies are detailed on pages 41 to 45of the Melrose Resources plc annual report for 2006. This report is approved bythe Board of Directors on 17 March 2008. The accounts are being prepared on the going concern basis which the directorsbelieve to be appropriate. The Company and Group meets its day to day workingcapital requirements and medium term funding requirements through corporate loanfacilities of $500 million. These facilities remain in place as at 31 December2007. While repayment of a $150 million short term facility is due in October2008, the directors have received confirmation that this facility may beextended to October 2009. The Group is currently arranging an increase in itsloan facilities to a total of $550 million with an expected final repayment dateof 2014. 2. Consolidated statement of recognised income and expenses Year ended 31 Year ended 31 December 2007 December 2006 $000 $000 Exchange differences on non-functional currency entities 49 (69)Cash flow hedges - effective portion of changes in fair value (358) 358Deferred tax on cash flow hedges 136 (136) (173) 153 (Loss)/profit for the period (63,214) 41 Total (expense)/income for the year (63,387) 194 3. Annual Accounts The financial information set out in this announcement does not constitute theGroup's statutory accounts for the year ended 31 December 2006 or 2007 but isderived from those accounts. Statutory accounts of Melrose Resources plc for2006, which were prepared in accordance with International Financial ReportingStandards ("IFRSs") as adopted by the EU, have been delivered to the Registrarof Companies and those for 2007 prepared under IFRSs as adopted by the EU, willbe delivered in due course. The auditors have reported on those accounts; theirreports were (i) unqualified and (ii) did not include references to any mattersto which the auditors drew attention by way of emphasis without qualifying theirreports and (iii) did not contain statements under section 237 (2) or (3) of theCompany's Act 1985. EU law (IAS Regulation EC 1606-2002) requires that the annual financialstatements of the Group for the year ended 31 December 2007 be prepared inaccordance with International Financial Reporting Standards ("IFRSs") and itsinterpretations as adopted by the European Union ("adopted IFRSs"). Theaccounting policies adopted by the Group and Company in this financialinformation are consistent with those used in the financial statements for theyear ended 31 December 2006. Glossary Glossary the Adair Trusts certain trusts, the beneficiaries of which are R F M Adair and members of his immediate familybbl barrel of oil or condensateBcf billion cubic feet of gasBcfe billion cubic feet of gas equivalentbcpd barrel of condensate per dayboe barrel of oil equivalentboepd barrel of oil equivalent per dayBOP blow-out preventerbopd barrel of oil or condensate per daybpd barrels per daythe Combined the Principles of Good Governance and Code of Best Practice as appended to the ListingCode Rules of the Financial Services Authoritythe Company Melrose Resources plcEBITDAX earnings before interest, taxation, depletion, depreciation and amortisationGIIP gas initially in placethe Group the Company and its subsidiariesMbbl thousand barrels of oil or condensateIFRS International Financial Reporting Standard(s)Mboe thousand barrels of oil equivalentMcf thousand cubic feet of gasMcfe thousand cubic feet of gas equivalentMcfpd thousand cubic feet of gas per dayMelrose the Company or the Group, as appropriateMerlon Merlon Petroleum CompanyMMbbl million barrels of oil or condensateMMboe million barrels of oil equivalentMMcf million cubic feet of gasMMcfe million cubic feet of gas equivalentMMcfpd million cubic feet of gas per dayMMcfepd million cubic feet of gas equivalent per dayNPV10 net present value discounted at 10% per annumPDP proved developed producingPetreco Melrose Resources S.a r.l. and/or Petreco Bulgaria EOOD, (as appropriate)psi pounds per square inchPSP Performance Share PlanPUD proved undevelopedTcf trillion cubic feet of gas This information is provided by RNS The company news service from the London Stock Exchange