Melrose announced a new agreement to farm-down its interests in the Rhone Maritime concession offshore France and the commencement of seismic acquisition operations in the South East Mansoura concession in Egypt.
Melrose currently holds a 100 percent working interest in the Rhone Maritime concession located in deep water offshore the Rhone Delta in the Mediterranean Sea. The concession is largely unexplored and contains a number of different frontier exploration plays which require further evaluation with additional seismic data before drilling commitments may be undertaken.
In order to effectively progress the forward work program, the Company has identified the need to form a strategic partnership with an experienced deep water operator. Melrose has therefore entered into a Heads of Agreement with Noble Energy Incorporated ("Noble") under which the Company will retain a 27.5 percent working interest in the block with Noble acquiring the balance and assuming operatorship. Under the agreement, Noble will fund a disproportionate amount of the proposed seismic program. It is also planned to obtain an extension to the concession until November 2015. The transaction remains subject to final regulatory and board approvals.
The Company has recently commenced the planned seismic acquisition program in the South East Mansoura concession onshore the Nile Delta. The program will take approximately four months to complete and will comprise approximately 360 square kilometres of 3D seismic and 160 kilometres of 2D seismic data. The primary objective of the survey is to evaluate a geologic trend containing a number of Lower Cretaceous oil leads which have been identified on previously acquired 2D data and are estimated to have significant resource potential.
Commenting on the update, David Thomas, Melrose's Chief Executive said, "We are also very pleased to have found such a strong partner to introduce to our deep water Rhone Maritime concession and look forward to working with the Noble team to fully evaluate the acreage."
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