Melrose Resources Provides El Mansoura Concession Operating Update

Melrose Resources plc announced the results of the latest wells to be drilled on the El Mansoura Concession in Egypt. The Abu Arida exploration well was drilled to test a Pliocene seismic anomaly in the western area of the concession. The well was drilled to a TD of 7,135 ft and a good quality, gas filled sand was encountered between 5,080 ft and 5,110 ft with no water contact. The well was completed and the upper 8 ft of the reservoir sand was perforated and tested at 7.5 MMcfpd on a 24/64ths choke with a well-head flowing pressure of 2,091 psi. Estimated gross reserves, as expected, are in the range 10-15 Bcf and the well will be tied in to the South Bilqas production facilities.

The ECDC-1 rig has moved to the south of the concession and has now spudded the Tummay exploration well. This will be the first of several exploration wells targeting the El Tamad oil trend.

The main target of the Khilala No.1 exploration well in the north-west of the concession was an Abu Madi Level II seismic anomaly. The well was drilled to a TD of 11,250 ft and good gas shows were encountered in the main target and in a deeper horizon. Logs over the Abu Madi interval indicate a gross gas filled interval from 9,924 ft to 10,046 ft with no water contact and with the main clean sand interval from 9,951 to 10,046 ft. The top unconventional reservoir section from 9,924 ft to 9,950 ft will be perforated and tested first before testing the main pay section.

Preliminary gross reserve estimates in the Abu Madi are in the range 80-150 Bcf. Swelling shales made it impossible to log the hole below 10,550 ft to evaluate the gas shows seen in the deeper horizon. An appraisal well on the Abu Madi structure is now being planned using the same PD-104 rig and every effort will be made to evaluate the deeper anomaly in this follow-up well.

The EDC-09 rig has returned to El Mansoura and has spudded the South Batra No.22 appraisal well. This will test the western Abu Madi channel system where the South Batra No.4 and No.7 wells are already producing. The well has already drilled through most of the Pliocene section to 8,500 ft and strong gas shows were encountered from 6,600 to 6,700 ft in the Mansouriya Channel equivalent interval. This Pliocene horizon will be cased prior to drilling the potential Abu Madi reservoir section.

Commenting on this, Robert Adair, Chairman, said: "The Pliocene section in the El Mansoura Concession continues to provide us with a very high drilling success rate and the Abu Arida and South Batra No.22 wells are solid results for us. We are particularly pleased with the success of the Khilala No.1 exploration well where we have encountered the best Abu Madi sands to date and the full section is gas filled. Appraising this structure is a high priority and we are also very keen to evaluate the potential of the deeper seismic anomaly. With further wells also planned in the El Tamad oil trend we have an exciting drilling programme ahead."