United States Update

RNS Number:0963L
Melrose Resources PLC
04 January 2008


FOR IMMEDIATE RELEASE                                             4 January 2008

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


                              United States update


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


East Texas exploration


The Company's exploration and appraisal drilling programme near Lake Houston,
East Texas, has commenced with the successful drilling of the Johnson No.1
appraisal well on the Van Riet field.


The well was drilled into an untested fault compartment to the east of the main
field area and encountered 48 feet of net gas pay in the main Van Riet
formation. Open hole log and downhole sample data indicate that the formation is
productive and the well will be tied back to the local gas transmission
infrastructure for immediate production. The net proved plus probable reserves
estimate for the well is approximately 4 billion cubic feet of gas ("Bcf").

The drilling programme will continue in late January with the drilling of the
Holmes No.4 appraisal well, which is located on the undrilled western flank of
the Holmes structure, 1.4 kilometres west of the crestal production wells. The
Holmes No.4 is targeting net unrisked reserves of 9 Bcf and has an estimated
chance of success of 44%.


Plans are also being prepared to drill an exploration prospect in the Wilcox
formation on the Company's acreage in the area around mid year. The prospect has
estimated net reserves potential of approximately 30 Bcf and a chance of success
of 20%.


Permian Basin development projects


Melrose is planning to invest approximately $50 million over the next two years
to pursue infill drilling and waterflood projects in its Permian Basin fields
which are located in West Texas and East New Mexico. The projects are initially
targeting the development of 11 million barrels of net proved undeveloped oil
reserves and are also expected to result in reserves increases.


Investment in the projects has already commenced with various facilities and
flow line upgrades and a drilling rig is being contracted to start a continuous
drilling programme on the Jalmat field in late January. A second rig will be
contracted to commence work on the Turner Gregory field before mid year with
drilling on the Artesia field planned to commence in late 2008.


The development projects will involve the drilling of approximately 120 new
production or injection wells with around 40 well conversions. When the
investment programme is complete, the average well spacing in all the fields
will be approximately 20 acres with fully defined pattern waterfloods in place
throughout out the development leases.



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


"We are very pleased with the results from the first well in the Company's
drilling programme in East Texas, where additional reserves have significant
value due to the strong gas prices currently being experienced in the US. There
is considerable upside potential in this area.


We are also looking forward to starting the infill drilling and secondary
recovery programme to further develop our Permian Basin oil reserves and Melrose
will be pursuing this project with vigour.


Elsewhere, our current exploration and appraisal well programmes in Egypt and
Bulgaria are progressing as planned and we expect to provide an update on these
over the next week or two."



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

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

Buchanan Communications
Tim Thompson                                 0207 466 5000
Ben Willey
Nick Melson




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

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