OIL and gas operator Melrose Resources said yesterday it had delivered a strong set of operating results in 2009 and a record level of production.
It said this was underpinned by its core Egyptian fields and five new developments coming on stream.
Executive chairman Robert Adair said: “We also had success with our exploration and appraisal drilling programme in Egypt and Bulgaria.
“It is very pleasing that we achieved a good reserves replacement ratio during a period when capital expenditures were reduced in response to the low oil prices experienced early in the year.
“We now look forward to 2010 when we plan to bring two new Bulgarian gas fields on stream and to progress our other gas developments in the western Black Sea towards project sanction.
“These new investments will add significant value and diversify the company’s production and revenue streams. We will also be dedicating an increased proportion of our capital budget, around 30%, to exploration and have an active seismic and drilling programme planned in our core and frontier exploration areas.”
Melrose said it had increased production to 38,595 barrels of oil equivalent per day in 2009, up 9% on the year before, and achieved a 131% reserve-replacement ratio.
It said it had brought five new Egyptian fields into production and made two Egyptian exploration discoveries last year, besides confirming commerciality of the Kaliakra field in Bulgaria through successful appraisal drilling.
The company reported pre-tax profits of £20.6million for 2009, down from profits of £95.53million the year before. This followed lower oil and gas prices. Turnover was £149.33million against £248.66million in 2008.