Drilling Report

RNS Number:8521I
Melrose Resources PLC
18 March 2003




The Drilling Report announcement for Melrose Resources PLC released today at
7.00 am under RNS No 8417I has been re-released to facilitate onward 
transmission by third party vendors.

The announcement is unchanged and is reproduced in full below.


FOR IMMEDIATE RELEASE                                              18 March 2003


                               Melrose Resources plc

                             New Gas Discovery in Egypt


Melrose Resources plc, the oil and gas exploration and production company with
interests in Egypt (held through its wholly-owned subsidiary Odyssey Petroleum
Corporation), Bulgaria and the USA, announces that the South Mansoura No.1
exploration well on the El Mansoura Concession in the onshore Nile Delta area of
northern Egypt has reached an intermediate depth of 7920 ft. Wire-line logs
indicate a gross mid-Pliocene reservoir interval of over 200 ft with 31 ft of
excellent quality reservoir. The remaining section, comprising interbedded sands
and shales, is also expected to contribute to reserves and production. Initial
estimates indicate minimum reserves 25 Bcfe gross (Melrose has a 50% interest in
this concession). This is potentially larger than the South Bilqas discovery
which commenced production in December 2002 at 12 MMcfpd.

The well is currently being deepened to test the late Miocene Abu Madi formation
at 8,300-9,000 ft.  This is the formation which was successfully tested in
February 2003 in the South Batra No.1 discovery well at rates of up to 31.2
MMcfpd and 560 bcpd. The South Mansoura No.1 well is expected to reach TD in the
mid-Miocene Sidi Salim at 9,800 ft. Production casing will be run and the well
will be tested following evaluation of the deeper zones.

Further evaluation work on the South Batra No.1 area indicates that the Abu Madi
Level II channel sands can be mapped over an area of 40 sq km and the Level III
channel sands can be mapped over 21 sq km. Should the structures be gas filled
over these areas and down to the anticipated GWC, over 600 Bcfe of Gas Initially
in Place might be expected in the two levels combined. EGAS has been approached
to discuss a Development Area and plans are being made to shoot 3-D seismic over
the area of the discovery.

Commenting on this, Robert Adair, Chairman, said:

"The South Mansoura No. 1 discovery confirms our understanding of the
mid-Pliocene exploration play in this area.  There are a number of similar
seismic anomalies which should provide a solid, low-risk means of building
production.  In deepening this well, we are also now seeking to confirm the
extension of the Abu Madi channel sand play into the south of the El Mansoura
Concession."


For further information please contact:

Melrose Resources plc
Robert Adair, Chairman                                             0131 225 6678
David Curry, Chief Executive                                       0131 225 6678
Chris Thomas, Corporate Development Director                       0208 228 1810

Binns & Co PR Ltd
Judith Parry/Sophie Morton                                         0113 242 1171





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