Bulgarian Operations Update

RNS Number:1806H
Melrose Resources PLC
07 November 2007


FOR IMMEDIATE RELEASE                                           7 November 2007



                             MELROSE RESOURCES PLC
                          ("Melrose" or "the Company")

                          Bulgarian operations update

Melrose Resources plc (LSE:MRS), the oil and gas exploration, development and
production company, today provides an update on its Bulgarian operations.

Following a review of recent Black Sea drilling results, Melrose is in the
process of withdrawing from its deep water acreage position and refocusing its
activities in the shallow water areas. As part of this process, the Company
hopes to shortly secure the Galata Exploration Block which surrounds the Melrose
operated Galata field and contains some attractive prospectivity. The Company
has also now signed an agreement with Bulgargaz, the Bulgarian state-owned gas
utility company, under which the two companies will conduct a joint feasibility
study to evaluate the conversion of the Galata field into a gas storage
facility.

In light of these business development initiatives, the Company plans to resume
operations with the Atwood Southern Cross semi-submersible drilling rig to take
advantage of the competitive rig day rates. The drilling rig will initially be
used to complete an appraisal well, Galata East No. 2, in the eastern fault
block of the Galata field. This region of the field is not being directly
drained by any producing wells and the new well will provide reservoir pressure
and deliverability data required for the Galata gas storage feasibility studies.
The well will then be temporarily suspended for potential use as part of the gas
storage scheme. Subsequently, contingent on ongoing discussions with the
Bulgarian authorities, the rig may be used to drill an exploration prospect in
the vicinity of the Galata field.

Following the completion of the above operations, the Company will conclude its
outstanding commitments with the Southern Cross rig and prepare the unit for
demobilisation out of the Black Sea. The anticipated cost for the remaining rig
programme including mobilisation, drilling and demobilisation activities is
approximately $15 million.

Commenting on the above, David Thomas, Chief Executive, said:

"The planned drilling programme is consistent with Melrose's strategy of
refocusing our Bulgarian activities on lower risk shallow water projects where
we can leverage our existing field infrastructure and geologic knowledge.

Elsewhere in our portfolio, operations on the Egyptian West Dikirnis development
continue to run smoothly and the project is in its final stages of pipe work and
cabling hook-up. First oil is expected in November. We are currently drilling
the Buhut exploration well in the west of the Mansoura concession, whilst
operations with our second exploration dedicated Egyptian drilling rig have been
temporarily suspended until around year end pending rig draw works repairs.

In East Texas, we expect to start drilling the first of our two planned gas
field appraisal wells, Johnson No.1, in early December."





For further information please visit www.melroseresources.com or contact:

Melrose Resources plc                                    0131 221 3360
David Thomas, Chief Executive
Robert Adair, Executive Chairman
Munro Sutherland, Finance Director

Buchanan Communications                                  0207 466 5000
Tim Thompson
Ben Willey




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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