Egypt Drilling Update

RNS Number:0423A
Melrose Resources PLC
11 July 2007



Immediate Release                                                 11 July 2007




                              MELROSE RESOURCES PLC

                            Drilling Update in Egypt

Melrose Resources plc (LSE:MRS), the exploration, development and production
company, today provides an update on the results of its continuing drilling
programme in Egypt.

As announced on 13 June 2007, the West Khilala No.5 development well was
successfully drilled at the northern-most extent of the field. The well was
tested over two intervals, totalling 38ft, and flowed at 9.6 MMcfpd on a 20/64"
choke. The well has now been suspended and will shortly be tied back for
production. The rig has now moved to drill the West Khilala No.7 (Deep)
exploration/appraisal well which is located on the south-east flank of the
field. The main objective for this well is to test an exploration prospect in
the deeper Qawasim formation, but it will also serve to delineate the edge of
the main productive Abu Madi reservoir.

The West Dikirnis No.6 well was drilled to test a separate culmination to the
south of the main West Dikirnis field. The well intersected the top reservoir
sand at 9,276 ft, which was found to be water wet. The rig has moved to drill
the West Dikirnis No.8 deviated development well as an oil producer in the
central-eastern area of the field.

Commenting on this, David Thomas, Chief Executive, said:

"The test results from the West Khilala No.5 well, drilled at the northern limit
of the field, are very positive since they confirm that we have good and
consistent reservoir quality across the field. The West Dikirnis No.6 well was
drilled to delineate the southern most limits of the field and so the results,
whilst disappointing, were not particularly surprising. The West Dikirnis field
development is now 75% complete and remains on track for first production at the
end of the third quarter."

For further information please contact:

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

Buchanan Communications                                          0207 466 5000
Ben Willey / Nick Melson

or visit www.melroseresources.com




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