Melrose Resources lowers 2011 production estimate

17th Aug 2011 15:01

Shares in Melrose Resources fell back after the oil and gas group cut its full-year production forecast following some problems at its Egyptian operations.The company now expects to produce 36m barrels of oil equivalent a day over 2011, down from a previous estimate of 40.5m.In the six months to 30 June, pre-tax profits rose to $33.2m from $4.1m, on revenues up to $155.8m from $110m.Among the difficulties in Egypt are "the gas re-injection process" reducing short-term gas sales from one of its fields and testing from one well showing "an unstable flow regime.""The company has delivered a strong financial performance and our underlying profitability has continued to improve whilst we have made a major step towards reducing financial gearing," chairman Robert Adair said. "We look forward to making further progress in continuing to grow as a diversified, well balanced exploration and production company."Melrose also has operations in Bulgaria, Romania, Turkey, France and the US.