Melrose Achieves First Gas from West Khilala Well

Melrose Resources plc on Thursday released an update on the results of its continuing drilling program in Egypt.

As announced on 3 April, after establishing the down-dip limits of the field on the western flank of the field, the West Khilala No.6 well was sidetracked to a location 30ft up-dip of the original well. The West Khilala No. 6 ST was logged with final results indicating a gross vertical pay interval of 68 ft with a high net to gross ratio. The well was tested over a 22 ft interval and flowed at 9.2 MMcfpd on a 20/64' choke. The well was put on production on 1st May 2007 and the West Khilala Field is currently producing at a total of 84.4 MMcfpd. The rig has moved and is now drilling the West Khilala No. 5 development location in the north-west area of the field.

Also as previously announced, the West Dikirnis No.3 development well was drilled in the central part of the field as an oil producer. The well successfully intersected a 40 ft gross oil column with 37.4ft of net pay in the Qawasim formation. This well has now been flow tested over a 27 ft interval and flowed oil at 4,320 bopd with gas rates of 7 MMcfpd through a 42/64' choke. The rig has moved to drill the West Dikirnis No.9 deviated well as an oil producer in the central-eastern area of the field.

Robert Adair, Melrose's Executive Chairman, said:

"The test results of these wells are in line with expectations and production from the West Khilala field continues to be impressive. The West Dikirnis field development is on track for first production which is scheduled for the end of September."


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