Melrose Resources starts exploration drive

Projects include proven hydrocarbon basins offshore Bulgaria and Romania, as well as new initiatives in Egypt, Turkey and offshore France.

The Edinburgh firm plans to allocate about 40% of its capital expenditure to drilling and seismic work programmes.

Melrose said it was placing more emphasis on its exploration portfolio rather than production and development.

The company expects to complete three exploration wells in Turkey, Bulgaria and Egypt in the second half of 2011.

Its drilling programme is targeting prospective resources of oil and gas.

Melrose said two of the wells were "potentially new exploration play openers with significant follow-on opportunities".

The oil and gas company also reported that seismic surveys acquired earlier this year on the Mesaha concession in southern Egypt and the Rhone Maritime block off France would help define their longer term exploration potential.