Melrose Resources announce record levels of production, 2009 results company news imageMelrose Resources (LON:MRS) released today its 2009 annual results.  The oil and gas exploration, development and production company with interests in Egypt, Bulgaria, Romania, the U.S, France and Turkey announced today a 9% increase in production, rising to 38,595 boepd from 35,554 in December 2008. The company also confirmed it had bought 5 new Egyptian fields over the period into production and had made two Egyptian exploration discoveries. An appraisal drilling in Bulgaria has affirmed that the Kaliakra field is commercially viable. A Romanian farm-in agreement was also reportedly signed and a resources upgrade completed.

Melrose's turnover for the period was $224 million, down from $373 million in 2008. Profit before tax was also down - $30.9 million compared to $143.3 million the year before. The company to increase the dividend by 10%, at 3.1 pence per share. They have also completed a equity placing of GBP11.2 million during the period and reportedly brought enhanced debt facilities up to $520 million. Rober Adair, Executive Chairman, said:

"Melrose has again delivered a strong set of operating results in 2009 and we achieved a record level of production, underpinned by our core Egyptian fields and five new developments coming on stream. We also had success with our exploration and appraisal drilling programme in Egypt and Bulgaria and it is very pleasing that we achieved a good reserves replacement ratio during a period when capital expenditures were somewhat reduced in response to the low oil prices experienced early in the year. Our financial performance also proved resilient with strong levels of turnover and EBITDAX. We now look forward to 2010 when we plan to bring two new Bulgarian gas fields on stream and to progress our other gas developments in the Western Black Sea towards project sanction. These new investments will add significant value to the Company and help rebalance the portfolio by diversifying the Company's production and revenue streams. We will also be dedicating an increased proportion of our capital budget, around 30%, to exploration initiatives and have an active seismic and drilling programme planned in our core and frontier exploration areas."

The Chairman of Melrose commented: "I am pleased to report that Melrose has again delivered strong operating results in 2009. The Group achieved a record production level…

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