Melrose has reported its annual production figures for 2009, as well as a summary of the Company's oil and gas reserves as at December 31, 2009.
Melrose's working interest production in 2009 totaled 63.7 Bcf and 3.47 MMbbl of oil and condensate, equating to an average daily production rate of 38.6 Mboepd. This is consistent with the Company's latest market guidance figure of 38.5 Mboepd, which was contained in the quarterly Interim Management Statement released on 18 November 2009.
The annual production rate represents an increase of 8.6 percent as compared to 2008. The improvement is due to the contribution of five new Egyptian fields which were brought on stream during the year, namely, South Zarqa, North East Abu Zahra, North Dikirnis, Damas and South Khilala.
On a net entitlement basis, Melrose's production in 2009 totaled 27.7 Bcf of gas and 1.59 MMbbl of oil and condensate and the average daily production rate was 17.0 Mboepd.
In Egypt, gross production totaled 62.1 Bcf and 3.24 MMbbl of oil and condensate, averaging 37.2 Mboepd. Melrose's net entitlement production totalled 26.1 Bcf and 1.36 MMbbls of oil and condensate, at an average rate of 15.6 Mboepd. Production from the Galata field in Bulgaria totalled 0.3 Bcf, at an average rate of 0.1 Mboepd. In the USA, Melrose's production totalled 1.3 Bcf of gas and 0.23 MMbbl of oil and liquids, at an average rate of 1.2 Mboepd.
Proved and Probable Reserves
The Company's total proved and probable reserves at December 31, 2009 were 68.5 MMboe on a net entitlement basis, which equates to an annual reserve replacement ratio of 131 percent.
The 2009 year end net entitlement proved plus probable reserves reflect the positive impact of reserves additions from the South Khilala discovery in Egypt (2.16 MMboe) and revisions to both the Kaliakra (5.54 MMboe) and Kavarna (0.87 MMboe) field volumes in Bulgaria, resulting from the successful Kaliakra appraisal well, and a revision to the East Texas probable reserves (0.97 MMboe).
They also reflect the impact of the increased annual production volume (6.20 MMboe) and a negative revision to the Company's net entitlement volumes in Egypt (1.89 MMboe), due to higher short term oil price assumptions, and various other less material reserves movements. There have been no material changes to the reserves assigned to the Company's main producing assets.
The above figures do not include reserves associated with the Ana and Doina gas fields offshore Romania, which will be added once the Company's interest assignment has been approved. On net basis the Company estimates that these fields contain probable reserves of 15.6 MMboe and this figure will be subject to an independent assessment prior to booking.
For completeness, on a working interest basis the Company's total proved plus probable reserves at December 31, 2009 were 131.4 MMboe. On the same basis and for reference, the booked proved plus probable reserves for the South Khilala, Kaliakra and Kavarna fields are 39 Bcf, 49 Bcf and 25 Bcf, respectively.
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