Melrose Resources Reached Record Production Levels in '09

Melrose Resources announced its annual results for the year ended December 31, 2009.

Operational highlights

  • 9% increase in working interest production to 38,595 boepd (2008: 35,554 boepd)
  • 131% reserves replacement ratio achieved.
  • Net entitlement reserves at year end of 68.5 MMboe (2008: 66.6 MMboe)
  • Five new Egyptian fields brought on production
  • Two Egyptian exploration discoveries
  • Successful appraisal drilling in Bulgaria confirming Kaliakra field commerciality
  • Romanian farm-in agreement signed and resources upgrade

Financial highlights

  • Turnover of $224 million (2008: $373 million)
  • EBITDAX of $178 million (2008: $330 million)
  • Profit before tax of $30.9 million (2008: $143.3 million)
  • Proposed dividend 3.1 pence per share (increase by 10% relative to 2008)
  • Enhanced debt facilities to $520 million and strengthened bank syndicate
  • Successful equity placing of £11.2 million ($18.5 million)

Robert Adair, Executive Chairman, commented, "Melrose has again delivered a strong set of operating results in 2009 and we achieved a record level of production, underpinned by our core Egyptian fields and five new developments coming on stream. We also had success with our exploration and appraisal drilling program in Egypt and Bulgaria and it is very pleasing that we achieved a good reserves replacement ratio during a period when capital expenditures were somewhat reduced in response to the low oil prices experienced early in the year. Our financial performance also proved resilient with strong levels of turnover and EBITDAX.

We now look forward to 2010 when we plan to bring two new Bulgarian gas fields on stream and to progress our other gas developments in the Western Black Sea towards project sanction. These new investments will add significant value to the Company and help rebalance the portfolio by diversifying the Company's production and revenue streams. We will also be dedicating an increased proportion of our capital budget, around 30%, to exploration initiatives and have an active seismic and drilling program planned in our core and frontier exploration areas."