Melrose Begins Production from Bilqas Field in Egypt

Melrose Resources' discovery well in the South Bilqas field on the El Mansoura Concession in Egypt, announced on January 4, 2002, has commenced production at a rate of approximately 10 MMcfpd. Melrose has a 50% working interest and under the concession's revenue sharing terms, Melrose's net share of production is approximately 2.4 MMcfpd.