MELROSE Resources, the Edinburgh-based oil and gas operator, said yesterday it had made a gas discovery and achieved first production from two new field developments in Egypt.
It said the South Khilala-1 exploration well had encountered 62 feet of net pay and had been flow tested at 17.6million cubic feet (mcf) of gas per day with small amounts of condensate.
The mid-case estimate of reserves is 36billion cu ft (bcf) and the well has already been completed as a producer for fast-track development via the nearby West Khilala field infrastructure.
Melrose said the South Zarqa and North East Abu Zahra field developments in Egypt had been completed within budget and ahead of schedule.
It added that the fields contained total proved plus probable reserves of 58bcf of gas and 1.6million barrels of condensate and were producing at 22mcf of gas and 710barrels of condensate per day.
Melrose said its Egyptian production was now 224mcf of gas equivalent per day.
Oil prices closed near a six-month high yesterday amid hopes for an economic recovery that could lift ailing energy demand. US crude rose 37 cents to $56.71 a barrel, while London Brent added 32 cents at $56.47.
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