MELROSE Resources said yesterday it had signed a farm-in agreement with Sterling Resources under which it would earn a 32.5% interest in two blocks in the Black Sea, offshore Romania.
The Edinburgh-based oil and gas operator said one of the blocks contained the undeveloped Ana and Doina gas fields, which it estimated had gross combined probable reserves of 288billion cubic feet of gas and which were expected to be sanctioned for development early next year.
Melrose added that the blocks also contained a significant number of exploration prospects and leads which were candidates for drilling in the short to medium term. The Scottish company will pay £8.57million to earn its stake and will carry Sterling for a proportion of development costs up to £55.7million, depending on gas prices achieved.
It said the farm-in would give it an additional 15.6million barrels of oil equivalent (boe) of net probable reserves plus exploration acreage potentially with reserves of 20million boe.