Melrose Black Sea fund deal

Oil and gas explorer Melrose Resources has farmed out a 40 per cent stake in one of its Black Sea concessions to cover some of the costs of exploring the area.

The Edinburgh-based firm said yesterday that it was giving a working interest in the Muridava block off the coast of Romania to a subsidiary of Sterling Resources.

It is understood Sterling will cover 40 per cent of the project costs of the entire concession in return. Developing the concession is expected to cost about $53 million (£33m).

Melrose chief executive David Thomas said it made sense to share some of the investment risks of the programme.

Following the transaction, Melrose will retain operatorship and a 40 per cent interest in the concession, in which Petromar Resources also has 20 per cent.