Melrose on target at half-way point

8th Jul 2009 07:19

Oil and gas firm Melrose Resources is proceeding as expected at its oil and gas fields in Egypt, although recent government elections have held things up in Bulgaria.Production averaged approximately 16,000 barrels of oil equivalent per day (boepd) on a net entitlement basis versus current full year guidance of 15,700 boepd. The company says its operating performance is in line with expectations, but that it's still waiting for approval from Bulgarian authorities to start developing the Kavarna gas field, which contains estimated reserves of 24 billion cubic feet of gas (bcf).There are also various agreements that need to be completed before Melrose can start gas injection into the Galata field gas storage facility. But chief executive David Thomas expects to make further progress with these projects in the third quarter this year.He also plans to start drilling an appraisal well on the Kaliakra discovery in the Block Galata exploration concession in the Black Sea this month.First half cumulative capital expenditure was about $90m, 65% of which relates to development activity in Egypt. That will be reduced in the second half. Full year capital forecast remains in line with guidance at $165m. Interim results will be announced on 26 August.