RNS Number : 2260J
  Melrose Resources PLC
  01 December 2008
   


    FOR IMMEDIATE RELEASE
    1 December 2008

    MELROSE RESOURCES PLC
    Bulgarian Gas Storage Project Update

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

    In late 2007 Melrose signed a Memorandum of Understanding with Bulgargaz Holding EAD ("Bulgargaz"), the Bulgarian state-owned gas
utility company, under which the two companies conducted a joint feasibility study to evaluate the conversion of the Melrose operated Galata
gas field into a gas storage facility.

    The study concluded positively and plans are being brought forward to convert the field to gas storage with first injection commencing
in the third quarter of 2009.  The storage capacity will be developed in phases over a three year period with a total capital expenditure of
$90 million being required to create usable storage capacity of 1.8 billion cubic meters.

    The storage project continues to receive strong support from the Bulgarian Government, which wishes to supplement Bulgaria's existing
gas storage capacity in order to ensure a secure and well modulated gas supply and to comply with current European Union guidelines.

    Melrose and Bulgargaz now plan to enter into a second agreement under which Bulgargaz has the right to become an equity partner in the
Galata gas storage project and acquire up to a 40% working interest by contributing its proportionate share of the capital costs and cushion
gas requirements. It is expected that Bulgargaz will acquire this interest when first gas injection commences. 

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

    "This is a very positive development for the Galata gas storage project. Melrose and Bulgargaz have a strong, longstanding relationship
and we are looking forward to working with them to develop a fully integrated gas storage and supply system. They have a great depth of
experience in the Bulgarian gas business and, as the primary initial user of the new storage facility, their partnership in the project will
help promote and maximise the facility's usage." 

    For further information please contact:

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

 Buchanan Communications 
 Ben Willey                                                      0207 466 5000
 Ben Romney

    or visit www.melroseresources.com

    Disclaimer
    This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated
with the oil and gas exploration and production business. While Melrose believes the expectations reflected herein to be reasonable, the
actual outcome may be materially different owing to factors either within or beyond Melrose's control, and accordingly no reliance may be
placed on the figures contained in such forward looking statements. 


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