MRS Management Resource Solutions Plc

RNS Number:0448Y
Melrose Resources PLC
27 April 2004

FOR IMMEDIATE RELEASE



                                                                   27 April 2004

                             MELROSE RESOURCES PLC

                            Galata Offshore Pipeline

Melrose Resources plc is pleased to announce that the offshore platform and
facilities and all onshore pipelines and process facilities at the Galata field
development have been completed. However, during final pressure testing of the
offshore pipeline a minor leak was detected when the line was pressured to its
full operating pressure of 125 bar (1,875 psi). It has taken a few days to
identify the precise location of the leak, which was finally pinpointed on 20
April. Steps are now being taken to make the repair, which Melrose believes is
the financial responsibility of the pipeline contractor. Inevitably the repair
will take some time but every effort is being made to have the field on
production as soon as possible: first production is now targeted for late May. A
further announcement will be made when the field is on production.


Commenting on this, Robert Adair, Chairman, said:


"The short delay caused by the need for this repair is frustrating, especially
having suffered an earlier delay to the offshore line caused by storm damage.
However, there is little impact on the fundamental economics of the Galata
project. The development will have been completed in less than fourteen months
which is a considerable achievement by our project team.


The completion of the project will also open up the considerable potential of
the further exploration opportunities both on the Galata trend, where potential
reserves vary from 50 to 100 Bcf, and also in the channel play in the south of
Block 91-III and Block Kaliakra 99, where potential reserves are well in excess
of 1 Tcf . We intend to test both of these plays with exploration wells planned
for the third quarter of this year.


For further information please contact:

Melrose Resources plc
Robert Adair , Chairman                                           0184 553 7037
David Curry, Chief Executive                                      0131 221 3360
Munro Sutherland, Finance Director                                0131 221 3360


Buchanan Communications
Ben Willey                                                        0207 466 5000
Tim Thompson




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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