RNS Number:0059Z
Melrose Resources PLC
24 May 2004


FOR IMMEDIATE RELEASE                                              24 May 2004



                              MELROSE RESOURCES PLC


                 Successful testing of Galata Offshore Pipeline


Melrose Resources plc today announces the successful testing of the Galata Gas
Field offshore pipeline. Following the repair of a faulty weld section, the
pipeline has been successfully pressure tested up to the full operating pressure
of the line.


We will now commence displacement of water in the offshore pipeline using the
gas already in the onshore line. This is expected to take a further ten days,
with first gas sales commencing at the beginning of June. Average daily
production is expected to be 40 MMcfpd, with a peak of 53 MMcfpd in the winter.



Commenting on this, Robert Adair, Chairman, said:


"Completion of the Galata Gas Field development, which will represent a very
significant source of cashflow to Melrose, is a major milestone for us as an
international operating company. The platform has been designed with
considerable flexibility to allow production capacity of up to 120MMcfpd to
enable us to tie-in further discoveries and to convert the Galata Gas Field to a
gas storage facility at a later date. We are now stepping up our exploration
activities on Block 91-III and Block Kaliakra 99 where we have a number of
drillable prospects which offer the potential to significantly enhance
shareholder value."


Notes to editors


1.                   Melrose has a 100% working interest in the Galata
Production Concession;


2.                   The Galata Gas Field has Proved reserves of 65 Bcf (62 Bcf
net to Melrose) and Proved and Probable reserves of 90 Bcf (83 Bcf net to
Melrose);


3.                   Daily production from the Galata Gas Field is expected to
exceed 50 MMcfpd during the peak winter months. The gas will be sold under a
"take-or-pay" contract with Bulgargaz, the state owned gas distribution and
supply company, for up to 14 Bcf per year;


4.                   Glossary: MMcfpd - million cubic feet per day; Bcf -
billion cubic feet.


For further information please contact:

Melrose Resources plc
Robert Adair, Chairman                                           0207 462 1603
David Curry, Chief Executive                                     0131 221 3360
Chris Thomas, Corporate Development Director                     0207 462 1603

Buchanan Communications                                          0207 466 5000
Ben Willey/Tim Thompson


or visit www.melroseresources.com.






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

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