Melrose Resources, the oil and gas exploration and production company, announced today a new exploration discovery and the start of a seismic data acquisition in Egypt.
Melrose Resources is an Edinburgh-based oil and gas exploration, development and production company with interests in Egypt, Bulgaria, Romania, United States, France and Turkey. Melrose was founded in the 1990's and was listed on the Main Market of the London Stock Exchange in 1999.
Todays announcement revealed that recent testing of the Sidi Salim formation in the South East Mansoura concession had been successful. The Company holds 100% working interest in this prospect. The well was reportedly drilled to a depth of 4345 feet and revealed 76 feet of net gas pay with positive reservoir properties. The estimated gas reserves were reportedly in line with the pre drill analysis. The Company expects to complete production of the well within 3 months, at an estimated cost of US$3.3m.
Following the completion of this well, the Company expect to drill another prospect in the Sidi Salam area, called Tall Rak. This area has, according to the report, unrisked reserves and a 34% chance of success.
Melrose also recently began the acquisition of the first 2-D seismic survey in the Mesaha region of southern Egypt, where the Company has a working interest of 40%. The concession covers an area of approximately 57,000 square kilometres, expected to contain an untested sedimentary basin. The survey is intended to confirm the basin structure and, subject to these results being in line with expectations, the Company plan to start and exploration drill of the area in Q4 2010.
Commenting on the update, David Thomas, Chief Executive said:
"We are very pleased with the results from the South Damas No.1 well and are now looking forward to drilling the Tall Rak prospect which, in the success case, could be highly material to the Company. We are also looking forward to reviewing some early results from the Mesaha 2-D seismic survey which will start to provide an indication of the potential of this virgin frontier exploration basin."
