Melrose gains Black Sea concession

Offshore staff

EDINBURGH, UK --Bulgaria's government has awarded to Melrose Resources exploration rights to a shallow water block in the Black Sea.

Block Galata surrounds the company's Galata gas field. Melrose says the acreage has potential in numerous geological horizons, including the same Paleocene formation containing the Galata reservoir.

The company has identified three structures in the new block with possible reserves totaling around 100 bcf. It plans to use the semisubmersibleSouthern Cross to drill the largest of these, Kaliakra, around 15 km (9 mi) east of the Galata platform.

A commercial discovery could be tied back swiftly, as spare processing/transportation capacity is available.

Melrose also will seek to lessen its working interest in Galata to around 60%, to limit its exposure to exploration risks and costs.

12/12/2007