Melrose Resources production up 7%

FIRST-QUARTER production at Edinburgh-based oil and gas company Melrose Resources rose by 7 per cent year-on-year, boosted by higher output from its fields in Bulgaria.

In Turkey, the firm expects the initial results from its South West Kanun-1 exploration well in July.

Melrose said there had been "no major changes" in its balance sheet since 31 December, with net debt now sitting at $412.8 million (254.3m) on 31 March, giving a debt-to-equity ratio of 121 per cent, down from 133 per cent at the end of 2010.

Chief executive David Thomas said: "We are looking forward to the second half of the year when we will receive some key well results from Turkey, Bulgaria and Egypt."

Thomas added that he expected the company's financial gearing to be down to 100 per cent by the end of the year.