Melrose confirms Romanian licenses

Melrose Resources has signed concession agreements for two offshore exploration blocks in the Romanian sector of the Black Sea.

Offshore staff

EDINBURGH, Scotland -- Melrose Resources has signed concession agreements for two offshore exploration blocks in the Romanian sector of the Black Sea.

EX-27 (Muridava) and EX-28 (Est Cobalcescu) were awarded by the Romanian National Agency of Mineral Resources last June under the country’s 10th Licensing Round in June 2010. Melrose holds an 80% interest in both blocks, the remainder is held by Petromar Resources.

The licenses are in shallow water in the western part of the Black Sea, covering a total of 2,000 sq km (772 sq mi). They contain multiple exploration plays and are on trend with Pliocene and Miocene gas discoveries elsewhere in Romanian waters.

Both permits are covered by old regional 2D seismic data, and Muridava includes the Olimpiskiyi gas/oil accumulation, drilled in 2001. This will be appraised as part of the license work program.

The concessions carry a three-year initial term followed by an optional three-year extension. In both cases, the firm work program comprises 2D and 3D seismic acquisition in Year 1, one well in Year 2, and two wells in Year 3.

Melrose may in time consider reducing its interests in the blocks. It expects to invest around $60 million on exploration activities during the initial terms.

03/14/2011

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