Melrose announces new gas discovery in Egypt

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The oil and gas explorer Melrose Resources has announced a new exploration discovery and commencement of seismic data acquisition in Egypt.

In a statement the company said that the South Damas No.1 exploration well has been successfully drilled to test a prospect in the Sidi Salim formation in the South East Mansoura concession, in which Melrose holds a 100% working interest.

The well encountered the top reservoir at a depth of 4345 feet and penetrated 76 feet of net gas pay with good reservoir properties.

"We are very pleased with the results from the South Damas No.1 well and are now looking forward to drilling the Tall Rak prospect which, in the success case, could be highly material to the company,” David Thomas, CEO of Melrose Resources, said.

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“We are also looking forward to reviewing some early results from the Mesaha 2-D seismic survey which will start to provide an indication of the potential of this virgin frontier exploration basin."

The preliminary estimate of the discovered reserves is 30 billion cubic feet of gas.