MELROSE Resources, the Edinburgh-based oil and gas operator, said yesterday it was planning a very active exploration and development work programme for 2010 and to spend more than £103million.
It said about £70million was considered to be firm and the rest contingent on approvals to complete planned farm-ins to two offshore Romanian concessions and to initiate the Bulgarian Galata gas-storage project.
The company added that it would dedicate a significant proportion of its capital investment to exploration, with 33% of the firm budget allocated to seismic acquisition and exploration drilling, compared with 19% in 2009.
Melrose said it was forecasting an average daily production rate in 2010 of 40,000 barrels of oil equivalent per day, about 4% higher than 2009 market guidance.
The relative contributions from its interests in Egypt, Bulgaria and America are estimated to be 78%, 17% and 5% respectively.
Chief executive David Thomas said: “We are looking forward to 2010 when we should start to reap the benefits of our recent development programmes in Egypt. During the year, we expect to generate significant operating cash flow which will provide us with a platform to refocus on exploration and business development.”