Melrose Resources Gets Nod To Develop Gas Field in Bulgaria

"The approval effectively commences the development of the Kavarna field, which contains estimated reserves of 24 Bcf (billion cubic feet of gas) and is located 8 kilometres east of Melrose's Galata field platform," the company said in a statement.

The company expects the field to be on stream by July 1, 2010.

Melrose has also also filed an application before the government in Sofia to develop a nearby gas field - the Kaliakra field which contains 57 Bcf of reserves. The gas field is located 14 kilometres east of Galata gas field which the company plans to transform into a gas storage depot together with state-run gas monopoly Bulgargaz.

First gas from the Kaliakra field is expected by October 1, 2010.

The total capital expenditure for the two developments is expected to be $59 million (39.6 million euro), Melrose added.

Melrose Resources (www.melroseresources.com) drills also in neighbouring Romania and in the U.S., Eqypt, France and Turkey.