Melrose races 9% ahead after news of gas discovery in Egypt

Shares in Melrose Resources raced up 9% on news of a discovery in Egypt accompanied by the prediction of a big increase in the company’s production in the country. The initial recoverable reserves were estimated at 120 billion cubic feet of gas and condensate but the company believes that appraisal of the find might lead to a significant increase in that figure. It is evaluating a number of similar prospects in the area identified by seismic survey work.

It also expects to start production this month from the recently announced Tamad and Turbay oil discoveries. In view of these recent discoveries and taking account of wells waiting to go into production Melrose expects current gross production of around 62 million cubic feet gas and 450 barrels oil daily to increase to over 180MMcfpd and 2,800 bpd by mid-2006.

theherald