Melrose Resources PLC Romanian Offshore Est Cobalcescu Farm-out (7638L)
September 10 2012 - 2:00AM
UK Regulatory
TIDMMRS
RNS Number : 7638L
Melrose Resources PLC
10 September 2012
FOR IMMEDIATE RELEASE
10 September 2012
MELROSE RESOURCES PLC
Romanian Offshore Est Cobalcescu Concession Farm-out
Melrose Resources plc ("Melrose" or the "Company"), the oil and
gas exploration, development and production company, today
announces that it has agreed to farm-out 30 percent of its equity
in the Est Cobalcescu exploration concession (the "Concession") to
Beach Petroleum (CEE) S.R.L ("Beach"), a wholly owned subsidiary of
Beach Energy Limited.
Following completion of the transaction Melrose will retain
operatorship and a 40 percent working interest in the Concession,
with Beach and Petromar Resources S.A. ("Petromar") each holding a
30 percent working interest.
Under the terms of the transaction, Beach will pay its
proportionate share of past costs on the licence and carry
Melrose's share of the recently completed 3D seismic survey,
representing an amount of approximately $4.8 million. The net
effect of the cost carry and new equity arrangements will be to
reduce Melrose's 2012 capital budget by around $8.4 million and the
Company's drilling costs over the following two years by an
estimated $16 million.
The transaction is subject to the formal approval of the
Romanian National Agency of Mineral Resources.
Commenting on today's announcement, David Thomas, Chief
Executive, said:
"We are pleased to announce the farm-out which is consistent
with our strategy to align the Company's working interests in Est
Cobalcescu and the neighbouring Muridava concession at 40 percent.
Both licences offer material exploration potential in an
under-explored region of the Black Sea, however, it is prudent at
this stage to share some of the investment risks on the multi-well
drilling program planned on the blocks over the next two years. We
welcome Beach to the joint venture partnership and look forward to
expanding the business relationship between our companies over
future years."
For further information please contact:
Melrose Resources plc
David Thomas, Chief Executive
Diane Fraser, Finance Director 0131 221 3360
Pelham Bell Pottinger
Mark Antelme
Henry Lerwill 0207 861 3232
or visit www.melroseresources.com
.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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