Melrose: West Khilala Discovery Going on Production Soon

Melrose Resources plc on Wednesday issued the following update of the results of its continuing drilling program in Egypt.

The West Dikirnis No.9 has been drilled as a development well in the western part of the field. The well successfully intersected a 117 ft of gross hydrocarbon column in the Qawasim formation consisting of 49 ft of gas above 68 ft of oil. The well was flow tested over a 15 ft interval from 9,192 to 9,207 ft and flowed oil at 4,370 bopd and gas at 7.3 MMcfpd through a 42/64' choke. The rig will now drill the West Dikirnis No.6, an appraisal well that is aimed at testing the southern-most extension of the West Dikirnis field.

The West Khilala No.5 development well has been drilled to test the northern limits of the field. The well was logged with final results indicating a gross vertical pay interval of 54 ft with 45 ft interpreted as net pay in an excellent sand reservoir. A production test is currently being planned before the well is put on production. The rig will then move to drill the West Khilala No.7 (Deep) exploration/appraisal well close to the southeastern limit of the West Khilala Field. This well will target an exploration objective in the Qawasim formation, deeper than the main West Khilala producing formation.

Robert Adair, Executive Chairman, said:

"The result of the West Khilala No.5 is in line with expectations and the well will be put on production shortly. Current production from the West Khilala field continues at 80 MMcfpd. The West Dikirnis No.9 should be a good production well and we have now established production capacity in the West Dikirnis field in excess of our target rate of 10,000 bopd. The West Dikirnis development project is now over 65% complete, with first production scheduled for the end of September."

Melrose announced the update at its annual general meeting, where the company's shareholders approved all of the resolutions put before them.


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