RNS Number:5520H
Melrose Resources PLC
17 February 2003



17 February 2003

                         MELROSE RESOURCES PLC

             Significant Gas/Condensate Discovery in Egypt



Melrose Resources plc, the oil and gas exploration and production company with
interests in Egypt, Bulgaria and the USA, announces that the South Batra
exploration well on the El Mansoura Concession in the onshore Nile Delta area of
northern Egypt has reached a TD of 10,300 feet. Wire-line logs identified 151
feet gross (74 feet net) of good quality reservoir in Level III of the late
Miocene, Abu Madi formation, and confirmed the presence of gas and condensate.
Initial estimates indicate a potential most likely reserves figure of 150 Bcfe
gross (Melrose has a 50% interest in this concession). Approximately ten feet
(gross) of gas bearing reservoir was also logged in Level II of the Abu Madi,
but this interval will not be tested in this well as the reservoir section is
believed to be much thicker at another location on the structure. As a result,
casing has been run and the well has been completed. The well has been flowed at
three test rates from 17.8 to 31.2 MMcfpd and up to 506 bcpd (separator
restricted). Well data is being re-integrated into the prospect evaluation in
order to establish a more precise reserve volume and also to evaluate further a
number of offsetting prospects within the Abu Madi channel system.



The drilling rig will now move to the location of the South Mansoura No.1 well.
This prospect is similar to the Pliocene El Mansoura No.3 discovery well, which
was completed and tested in January 2002 and brought on production at a rate 12
MMcfpd (gross) as the South Bilqas Field in December 2002.



The Bogdanov North well on Block 91-III offshore Bulgaria which was drilled to
TD of 3,400 feet and has been plugged and abandoned as a dry hole. The well
encountered 170 feet of good reservoir section compared with 82 feet in the
Galata Field but no significant indication of gas.  The Varna East and Varna
West prospects on the same block are being re-assessed on the basis of the
thicker reservoir section encountered in the Bogdanov North well.



Commenting on this, Robert Adair, Chairman, said:



"In Egypt, confirmation of the extension of the Abu Madi channel sand play into
the El Mansoura Concession, from the East Delta Concession to the North, is very
positive news. This result demonstrates the potential of a number of offsetting
Abu Madi channel structures and establishes a second exploration play on the
concession. Initial estimates of recoverable reserves are significantly in
excess of our expectations. The planned South Mansoura No.1 well will target the
original play in the Pliocene formation which was set up by the El Mansoura No.3
discovery.



On the Bogdanov North well in Bulgaria, the thicker than expected reservoir
section encountered maintains our interest in the other Galata trend prospects
but our focus will now shift to the exploration prospects in the north of the
concession, offsetting the onshore Tulenovo oil field."



For further information please contact:


Melrose Resources plc
Robert Adair, Chairman                                             0131 225 6678
David Curry, Chief Executive                                       0131 225 6678
Chris Thomas, Corporate Development Director                       0208 228 1810

Binns & Co PR Ltd
Judith Parry/Sophie Morton                                         0113 242 1171






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