Melrose provides operations update

Melrose Resources plc, an Edinburgh-based oil and gas exploration, development and production company with interests in Egypt, Bulgaria, United States, France and Turkey, provides an update on its operations in the Bulgarian sector of the Black Sea including the Galata field gas storage project, the Kaliakra field development and planned exploration drilling.

In late 2007, Melrose entered into an agreement with Bulgargaz, the Bulgarian state-owned gas utility company, under which the two companies have been conducting joint feasibility studies to evaluate the conversion of the Melrose operated Galata gas field into a gas storage facility.

These studies have confirmed that the Galata field is ideally suited for conversion to storage due to its high quality reservoir properties, infrastructure configuration and location.

The storage project is receiving strong support from the Bulgarian Government, which wishes to supplement Bulgaria’s existing gas storage capacity, located at Chiren, with a second facility in order to ensure secure and well modulated gas supplies and comply with current European Union guidelines.

Melrose, therefore, intends to exercise its right under the terms of the Galata field production concession to convert the field to a gas storage facility during 2009.