Melrose 'unaffected' by Egyptian protests

MELROSE Resources, the Edinburgh-based oil and gas explorer, yesterday said the recent civil unrest in Egypt had not had any impact on its operations in the country.

Melrose has no permanent UK management or staff in Egypt and allowed its Cairo-based local workforce to stay at home during the demonstrations.

The update came as the company reported its output figures for 2010 showing it had an average production of 41,000 barrels of oil equivalent a day, an increase of 6 per cent on 2009. The rise was down to new fields coming on stream in Egypt and Bulgaria.

Chief executive David Thomas said: "Melrose had another strong year of production in 2010 which will be supplemented in 2011 by a full year's contribution from the Kaliakra and Kavarna fields in Bulgaria. The cash-flow being generated by these fields provides the company with the capacity to pursue an increasingly active exploration and business development programme and reduce financial gearing."