Drilling Update in Bulgaria

18 Jun 2007 09:33

Melrose Resources PLC18 June 2007 FOR IMMEDIATE RELEASE 18 June 2007 MELROSE RESOURCES PLC Drilling Update in Bulgaria Melrose Resources plc (LSE: MRS), the oil and gas exploration, development andproduction company, today provides an update on its drilling programme in theBlack Sea, offshore Bulgaria. The Obzor No.1 exploration well reached a total depth of 1,326 m on 10 June2007. High gas shows were observed whilst drilling the Pliocene target intervaland the initial petrophysical evaluation indicated the presence of porous zoneswith potential gas saturations. Unfortunately, subsequent formation pressuremeasurements and sidewall cores established that the interval was not a goodreservoir sequence and mainly comprised low permeability shales and siltstones. The well is currently being plugged and abandoned and the Atwood Southern Crosssemi-submersible rig will be released to duty with another operator. The wellresults will be reviewed over the months ahead in order to fully understand theremaining potential of the Kaliakra 99 licence. Commenting on this, David Thomas, Chief Executive, said: "The Obzor No.1 well is the last of the three deep-water wells in Melrose's 2007exploration programme in the Black Sea. Similar to the previous two wells, thewell encountered strong gas shows indicating the presence of an activehydrocarbon system in the region. There was, however, insufficient reservoir payto justify a flow test. We will now fully assess the implications of these wellresults on our exploration strategy in the area and, in the interim, focus onour near-term exploration drilling programme on Egypt and North America." For further information please contact: Melrose Resources plcRobert Adair, Executive Chairman 0131 221 3360David Thomas, Chief Executive Munro Sutherland, Finance DirectorBuchanan CommunicationsTim ThompsonBen Willey 0207 466 5000or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange