Melrose gains further foothold off Romania

Melrose Resources and Petromar Resources have jointly won two shallow water exploration blocks in the Romanian Black Sea.

Offshore staff

EDINBURGH, UK – Melrose Resources and Petromar Resources have jointly won two shallow water exploration blocks in the Romanian Black Sea.

Melrose will operate blocks EX-27 and EX-28 with an 80% working interest. Both are northwest of the offshore Midia and Pelican concessions, where Melrose is working on various development and exploration programs with incumbent operator Sterling Resources.

The new acreage is in a little-explored part of the Black Sea, which was re-opened to exploration in February 2009 on resolution of the maritime boundary between Romania and Ukraine.

According to Melrose, the total permit area - 2,000 sq km, or 772 sq mi - has similar oil and gas exploratory plays to those proven in Midia and Pelican. Block EX-27 has one oil discovery, Olimpiskyi, drilled in 2001.

The company expects to sign the concession agreements towards year-end. Each will have a firm work program of 2D and 3D seismic acquisition in the first year, followed by one well in year two and two more in year three.

Melrose expects to invest a minimum of $60 million on activities during the initial term period, but may also consider reducing its working interest in both blocks.

In the Bulgarian offshore sector, the jackup Jupiter has started drilling the Kavarna East 1 well in the Galata block. Melrose says the well will test a low-risk prospect situated between the Kavarna and Kaliakra fields, with prospective reserves of 12 bcf.

The rig may go on to test the Kaliakra East prospect, where estimated resources are 59 bcf, but only if seabed conditions allow the rig to operate in the required water depth.

GSP’s pipelay barge Bigfoot should arrive in the Galata block in August to install the flow lines for the Kavarna and Kaliakra developments.


07/07/2010

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