RNS Number:4408J
Melrose Resources PLC
07 December 2007


FOR IMMEDIATE RELEASE

                                                                 7 December 2007
                             MELROSE RESOURCES PLC
                          ("Melrose" or "the Company")

                                Bulgaria update

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

On 6 December 2007, the Bulgarian Government announced that it has granted
Melrose exploration rights to Block Galata, an exploration concession which
surrounds the Melrose operated Galata producing gas field. Following the
formalisation of the concession award, the Company expects to reduce its working
interest in the Block to around 60% in order to share the exploration drilling
risks and costs.

Block Galata is prospective in a number of geologic horizons and contains three
gas prospects in the same Paleocene formation as the Galata field reservoir.
These three prospects have a combined unrisked reserves potential of
approximately 100 billion cubic feet and are medium risk.

In light of the concession grant, Melrose will now use the Southern Cross
semi-submersible rig to complete the drilling of a Paleocene prospect in Block
Galata called Kaliakra. This follows the successful completion of an appraisal
well in the eastern fault block of the Galata gas field which has provided
reservoir pressure and deliverability data required for the ongoing Galata field
gas storage feasibility study. The appraisal well has been suspended for
possible future use in the gas storage project.

The Kaliakra prospect is located approximately 15 kilometres east of the Galata
platform and has unrisked reserves potential of 68 billion cubic feet and a
chance of success of 35%. In the event of exploration success, a discovery could
be rapidly tied back to the Galata platform where there is spare processing and
transportation capacity.
Commenting on the above, David Thomas, Chief Executive, said:

"We are very pleased with the outcome of our discussions with the Bulgarian
authorities regarding the Galata exploration concession. We are now well
positioned to pursue our further shallow water exploration plans in the area
and, in particular, to drill the Kaliakra prospect which we view as a key well
to test the remaining Paleocene potential in the Block."

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

END
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