Melrose Makes 3rd Discovery on El Mansoura Concession

Melrose Resources announces a third consecutive discovery in the mid-Pliocene horizon on the El Mansoura Concession, in which its wholly-owned subsidiary, Odyssey International Petroleum, has a 50% interest. The well also encountered gas and condensate bearing intervals in the deeper, Miocene channel play, discovered in the South Batra No.1 well.

The Mansouriya No.1 exploration well on the El Mansoura Concession in the onshore Nile Delta area of northern Egypt reached a total depth of 10,530 ft and a gross reservoir interval of 130 ft is present in the main exploration target, the mid-Pliocene, Kafr el Sheik. A section of this interval was flow tested at 16.8 MMcfd on a restricted choke.

The well was deepened to the Miocene, Abu Madi interval encountered in the South Batra No.1 discovery well. Gas and condensate were sampled in this horizon using a wireline MDT tool and as a result the gas column in the South Batra discovery has been shown to be deeper than previously thought. The deepened section of the well was drilled using a small bit and will not be tested.

Commenting on this, Robert Adair, Chairman, said: 'We are delighted with this new discovery in the mid-Pliocene horizon on the El Mansoura Concession. In addition, the data from the Abu Madi interval is of even greater significance. We have confirmed the extension of the Abu Madi channel sand play 10 km to the west of the South Batra No.1 discovery and increased the total proven gas column in this horizon. Following discussions with the operator we now believe that the most likely reserves in the South Batra structure have increased to around 500 Bcfe. Current development plans call for the South Batra field to come on production in October at 30 MMcfd, increasing to 100 MMcfd in 2005. A further increase in plateau production rate may now be justified.'

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