Melrose Boosts Production Interest from Egyptian Fields' Output
Melrose Resources reports production for the year to December 31, 2008 and oil and gas reserves as at that date.
Melrose's working interest production in 2008 totalled 56.2 Bcf of gas and 3,649 Mbbl of oil and condensate, equating to an average daily production rate of 35.6 Mboepd. This represents an increase of 43% as compared to 2007, which is primarily due to the contribution of a full year of production from the Company's West Khilala and West Dikirnis fields in Egypt.
Melrose's net entitlement production in 2008 totalled 30.0 Bcf of gas and 1,769 Mbbl of oil and condensate. The average daily rate was 18.5 Mboepd, representing an increase of 23% from 2007.
In Egypt, gross production totalled 47.0 Bcf and 3,376 Mbbl of oil and condensate, averaging 30.6 Mboepd. Melrose's net entitlement production totalled 20.9 Bcf of gas and 1,497 Mbbl of oil and condensate, an average rate of 13.6 Mboepd. Production from the Galata gas field in Bulgaria totalled 7.4 Bcf, an average rate of 3.4 Mboepd. In the USA, Melrose's production totalled 1.8 Bcf of gas and 273 Mbbl of oil and liquids, an average rate of 1.5 Mboepd.
Total production in 2008 was marginally higher than the Company's current market guidance of 18.3 Mboepd which was issued in late October 2008.
Proved and Probable Reserves
The Company's total proved and probable reserves at December 31, 2008 were 66.6 MMboe, which equates to an annual reserve replacement ratio of 290%.
The 2008 year-end reserves reflect the impact of production volumes and the reserves revisions announced in the second half of the year with respect to the Permian Basin fields in the USA. The volumes also reflect additions from the Kaliakra and Kavarna field discoveries in Bulgaria, the East Abu Khadra, Damas and North Dikirnis field discoveries in Egypt and the Tamad producing field upgrade in Egypt.
The combined Kaliakra and Kavarna proved and probable reserves booked at December 31, 2008 are 35.8 Bcf which represents a conservatively risked volume and assumes a 100% working interest.
The disclosed reserves volumes are entirely consistent with an independent reserves assessment which has just been completed on the Company's assets.
Commenting on these figures, David Thomas, Chief Executive, said, "Melrose has delivered strong operational performance in 2008, with production increased by 23% on a net entitlement basis compared with 2007. We are also particularly pleased to have achieved a proved and probable reserve replacement ratio of 290% for the year."
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