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BULGARIA GOVT BOOSTS DEVELOPMENT BANK CAPITAL AS ANTI-CRISIS MEASURE

Posted by Gilmour Poincaree on December 11, 2008

10 December 2008, Wednesday

PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’

Bulgaria’s cabinet voted Wednesday to increase the capital of the Bulgarian Development Bank by BGN 330 M as Bulgaria's cabinet voted Wednesday to increase the capital of the Bulgarian Development Bank by BGN 330 M as an anti-crisis measure -  Photo by Yuliana Nikolova - Sofia Photo Agencya measure to counter the effects of the global financial crisis on the real sector.

The government takes such a step for the second time in less than two month after it increased the capital of the Bulgarian Development Bank by BGN 100 M on November 4, 2008.

The Bulgarian Development Bank (BDB) is a top priority financial instrument of the government as it is creating various schemes to support entrepreneurship especially with respect to the export potential and competitiveness of the Bulgarian economy.

Wednesday’s financial injection of the BDB will enable it to grant credits to commercial banks, which in turn would be able to provide loans to small and medium-sized enterprises with more favorable conditions.

The BDB finances its activity by emitting bonds, through EU funds, and though credits from local, and international financial institutions. It was set up in April 2008 as a successor to the former “Encouraging Bank” in order to help for Bulgaria’s economic development.

The increases of the capital of the BDB are not limited by its statutes. The decision to increase its capital are made by the general assembly of its shareholders but the Bulgarian state always holds no fewer than 51% of its shares, which are non-transferable.

The BDB statutes stipulate that its shares could be obtained by the European Investment Bank, the Development Bank of the Council of Europe, the European Investment Fund, and development banks of other EU member states.

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PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’ (Spain)

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Posted in BANKING SYSTEMS, BULGARIA, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, EUROPEAN CENTRAL BANK, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, INTERNATIONAL RELATIONS, THE EUROPEAN UNION, THE FLOW OF INVESTMENTS | Leave a Comment »

BULGARGAZ WANTS NATURAL GAS PRICES UP BY 21% FROM JANUARY 1, 2009 – Bulgaria’s gas monopoly Bulgargaz wants a 21,31% increase in the natural gas prices in Bulgaria starting January 1, 2009

Posted by Gilmour Poincaree on December 11, 2008

10 December 2008, Wednesday

PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’

The company, which is already part of the Bulgarian Energy Holding, submitted Wednesday its suggestion for the new gas prices to the State Commission for Energy and Water Regulation (DKEVR).

The Bulgargaz proposal provides for a natural gas price of BGN 653,46 for 1 000 cubic meters, with the 20% value-added tax not included, which is an increase by BGN 114,80. The new price would include a transit fee of BGN 19,73.

Bulgargaz justifies its proposal with the more expensive US dollar, whose value increased has increased by 15,39%. In addition, the statement of the monopoly reminds that the DKEVR did not approve its suggestion to increase the natural gas prices by 36% in the fourth quarter of 2008, and voted for a 24% increase instead.

Bulgaria’s DKEVR will decide on the new natural gas prices during its session on December 22 or 23, when it will also become clear how much the central heating costs would increase as the heating prices depend primarily on the natural gas prices.

On December 5, the Bulgarian cabinet decided to allocate BGN 160 M to Bulgargaz as part of a BGN 400 M anti-crisis package for the Bulgarian Energy Holding.

The funds would be used to cover Bulgargaz’s expenses for deferring the natural gas payments owed to it by Bulgarian businesses until the 300% decrease of the global oil prices kicks in, and brings down the natural gas prices of the Russian provider Gazprom.

According to the present scheme, Gazprom’s natural gas prices for Bulgaria are formed on the basis of the oil prices nine months ago. Thus, the present price levels are still based on the peak oil prices from the summer when a barrel of oil reached USD 147 on the world market.

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PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’ (Spain)

Posted in BULGARIA, COMMERCE, COMMODITIES MARKET, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ENERGY, ENERGY INDUSTRIES, FINANCIAL CRISIS 2008/2009, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, INTERNATIONAL RELATIONS, NATURAL GAS, RECESSION, RUSSIA | Leave a Comment »

ROMANIAN-ENGLISH FERTILIZER PRODUCERS SACKS 5 500 WORKERS

Posted by Gilmour Poincaree on December 11, 2008

10 December 2008, Wednesday

PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’

The Romanian-English fertilizer company InterAgro is going to lay off about 5 500 workers, or about 90% of its employees, the Romanian newspaper Adevarul reported.

The company is going to close down all of its six chemical plants, which produce fertilizers. The only way to save the factories would be if the Romanian state supported the company, the InterAgro President Ioan Niculae is quoted as saying.

Such a step, however, would be a breach of EU competition rules, and is therefore unlikely.

Niculae also said the closure of the company factories would incur losses of USD 100 M. InterAgro exports its fertilizer production, and the declining demand on the international market due to the global financial crisis has affected the company.

Bulgaria’s fertilizer producer Agropolychim has also been troubled by the effects of the global financial crisis, and has had to shut down temporarily its production lines.

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PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’ (Spain)

Posted in AGRICULTURE, BULGARIA, CHEMICALS (processed components), COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ENGLAND, FERTILIZERS, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FOREIGN POLICIES, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, INTERNATIONAL RELATIONS, JUDICIARY SYSTEMS, NATIONAL WORK FORCES, RECESSION, ROMANIA, STOCK MARKETS, THE EUROPEAN UNION, THE FLOW OF INVESTMENTS, THE WORK MARKET, THE WORKERS, UNITED KINGDOM | Leave a Comment »

SEVEN INVESTORS SUBMIT OFFERS FOR RUNNING KREMIKOVTZI (Bulgaria)

Posted by Gilmour Poincaree on December 11, 2008

11 December 2008, Thursday

PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’

Bulgaria’s Economy Ministry has received seven offers with bids for the purchase or the operation of the troubled Bulgaria's Economy Ministry has received seven offers for Kremikovtzi by Bulgarian and foreign companies - Photo by Yuliana Nikolova - Sofia Photo Agencysteel-maker Kremikovtzi, the Trud Daily reported Thursday.

The paper points out that the most serious bidder is the Ukrainian company Smart Group which offers an emergency plan for saving the factory, and a longer-term recovery program by restructuring and acquisition of new assets. It is expected to present its demands about Bulgarian state guarantees for Kremikovtzi within several days.

The Czech company ML Moran offers to finance Kremikovtzi enabling the plant to buy raw materials, and manufacture and sell its production. The bulk of the revenue, however, would go to the creditor so the main advantage of this plan would be to keep the factory running.

Each of two other foreign companies – the Russian Prominvest, and an unnamed Italian company – are offering to provide raw materials, and working capital for Kremikovtzi in exchange for guarantees by the Bulgarian state.

The former owner of the steel mill Valentin Zahariev, who sold the plant to the Indian tycoon Pramod Mittal in 2005, has offered to run the plant after setting up a new firm for the purpose. In the event of liquidation of the factory, however, he is asking to be allowed to buy out the assets on sale.

The Bulgarian metal wastes trader Econmetal Engineering, whose facilities are located nearby Kremikovtzi, is offering to provide 60.000 tons of raw materials for the steel-maker in exchange for being allowed to realize the manufactured products on the market after that.

A group of bond holders is offering the factory a credit of EUR 345 M in exchange for Bulgarian state securities with a redemption date in 2013.

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PUBLISHED BY ‘BULGARIAN BUSINESS – NOVINITE.COM’

Posted in BULGARIA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FOREIGN POLICIES, INDIA, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, INTERNATIONAL RELATIONS, IRON ORE, ITALY, METALS, METALS INDUSTRY, MINING INDUSTRIES, NATIONAL WORK FORCES, RECESSION, RECYCLING INDUSTRIES, RUSSIA, STEEL, STOCK MARKETS, THE FLOW OF INVESTMENTS, THE WORK MARKET, THE WORKERS, UKRAINE | Leave a Comment »

BRAZIL INVESTOR CSN SENDS SCOUTS TO CHECK OUT KREMIKOVTZI (Bulgaria)

Posted by Gilmour Poincaree on November 24, 2008

24 November 2008, Monday

Representatives of the Brazilian company CSN (Companhia Siderurgica Nacional) are arriving to Bulgaria's troubled steel-mill Kremikovtzi will be surveyed by scouts of the Brazilian company CSN which has expressed interest in investing in the plant. Photo by Nadya Kotseva (Sofia Photo Agency)Bulgaria’s capital Sofia Monday to inspect the troubled steel-maker Kremikovtzi in view of its declared interest to bid for the purchase of the plant.

The news about CSN’s investment interest in Kremikovtzi was announced on November 19 when the management of the company had a working meeting with the Bulgarian Minister of Economy Petar Dimitrov during his official visit to the Brazilian city Sao Paolo last week.

Representatives of the Kremikovtzi management and syndicates also took part in the meeting from Sofia via video satellite.

According to the Technology Director of the Bulgarian steel plant Stoyan Pirlov, the Brazilian company, which is a large producer of iron ore and had really strong positions on the domestic market, was interested in acquiring a plant in Europe. COMPANHIA SIDERÚRGICA NACIONAL (CSN) - BRASIL

The visit CSN’s scouts to Kremikovtzi is expected to shed more light on the plans of the Brazilian company with respect to the plant.

According to sources from the plant management, the Ukrainian company Smart Group was still interested in bidding for the purchase of Kremikovtzi.

CSN was founded in 1969, and is presently the second largest steel-maker in Brazil. Its main plant is located in the city of Volta Redonda in the state of Rio de Janeiro.

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PUBLISHED BY ‘NOVINITE’ (Bulgaria)

Posted in BRASIL, BULGARIA, ECONOMIA - BRASIL, ECONOMIC CONJUNCTURE, ECONOMY, EXPANSÃO ECONÔMICA, EXPANSÃO INDUSTRIAL, FLUXO DE CAPITAIS, FOREIGN POLICIES, INDÚSTRIA METALÚRGICA, INDÚSTRIAS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, INTERNATIONAL RELATIONS, METALS INDUSTRY, RELAÇÕES INTERNACIONAIS - BRASIL, THE FLOW OF INVESTMENTS | Leave a Comment »

WORKERS, MANAGEMENT OF BULGARIA’S MILITARY FACTORY VMZ STRIKE DEAL

Posted by Gilmour Poincaree on November 24, 2008

21 November 2008, Friday

The workers of one of Bulgaria’s largest military factories, VMZ, which is located in the central Bulgarain town of Sopot, called off their strike on Friday after they reached an agreement with the management.

Several hundred workers led by the Podkrepa Labor Confederation stopped work as planned Friday morning in order to stage a protest rally.

A fight almost broke out at one point, when the protesting workers blocked the central entrance of the factory in order to prevent some of their colleagues, who did not support the strike, to reach their working places.

Later on Friday, however, the management of the factory agreed to fulfill all of the workers’ demands including the payment of salary increases of BGN 22 since July 1, the payment of transport allowances, the crafting of a production program for the next six months, and the termination of the sale of recycled factory equipment.

According to the Podkrepa trade union, a total of 1000 workers stopped work on Friday in protest. Many of the protesting workers stated they demanded a monthly salary of BGN 700. However, no such demand had formally been made by the trade unionists, and no such deal was included into the agreement that the syndicates and the management signed on Friday.

During the warning protests earlier this week, Georgi Katsarov from the strike committee of the Podkrepa Labor Confederation, said the actual average monthly wages in the plant were between BGN 320 and BGN 340. Katsarov also announced the claims of the VMZ Sopot Director Ivan Ivanov that the monthly salary in the plant was BGN 700 were not true.

The strike organized by Podkrepa was not supported by the other major trade union – the Confederation of the Independent Bulgarian Syndicates (KNSB).

KNSB representatives have stated the Podkrepa Union did not want to cooperate with them, and that the workers’ salaries were paid regularly, and the arms factory had enough orders to work properly.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘NOVINITE’ (Bulgaria)

Posted in BULGARIA, ECONOMIC CONJUNCTURE, ECONOMY, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, NATIONAL WORK FORCES, THE ARMS INDUSTRY, THE WORKERS | Leave a Comment »

MELROSE TOUTS ACTIVE DRILLING PROGRAM IN EGYPT, BULGARIA & US

Posted by Gilmour Poincaree on November 15, 2008

Thursday, November 13, 2008

Melrose Resources plc

MELROSE RESOURCES

Melrose Resources has issued its Interim Management Statement to cover the period July 1, 2008 to September 30, 2008 (“the Third Quarter”) and up to date. This information is provisional and unaudited and may be subject to further review.

Exploration

In October Melrose announced the success of the Kavarna No.1 exploration well, which was drilled approximately 7 km to the east of the Melrose-operated Galata gas field, offshore Bulgaria. The well

was drilled to total depth of 2,899 feet and encountered the top of the Paleocene reservoir target at a depth of 2,628 feet. The mud log obtained while drilling established that the reservoir formation was well developed and gas-bearing and the initial reserves estimate for the discovery is 24 Bcf.

The new discovery is located between the Galata field and the Kaliakra discovery which was announced earlier this year and which is estimated to contain reserves of up to 47 Bcf. Three future prospects exist on the same geologic trend and are candidates for drilling in 2009 and 2010.

Prior to completing the well, a strong gas influx occurred in the Kavarna No.1 well and for safety reasons it was necessary to plug the well which will now be redrilled. Subsequently an appraisal well will be drilled on the Kaliakra discovery to test for the significant reserves upside in the structure. First production is expected from the two discoveries in the second half of 2009 and 2010, respectively.

Development

Melrose is continuing with its active development program in Egypt. The West Dikirnis Phase II development project is progressing well with all initial design work complete and all major procurement contracts placed. The project is on schedule for the delivery of first LPG and gas reinjection in mid 2009. Also in Egypt, production was re-instigated from the Qantara field in October and the development projects at East Abu Khadra, North East Abu Zahra, South Zarqa and Damas are ongoing with planned first production on dates between December 2008 and September 2009.

In the USA, Melrose has continued with the development project on its fields in the Permian Basin in West Texas and New Mexico. A total of 42 new wells have been drilled to date and injection of water as part of the secondary recovery project in the Jalmat field has commenced.

In Bulgaria, the project to convert the Galata gas field to a gas storage facility is moving forward and discussions are continuing with the Bulgarian authorities to define commercial terms. First injection in the facility is expected in mid 2009.

Production and Product Prices

Melrose’s net entitlement production in the Third Quarter totalled 6.0 Bcf of gas and 357 Mbbls of oil and condensate, representing an increase of 6% compared with the same period in 2007. Average daily net entitlement production in the quarter was 14.8 Mboepd (88.9 MMcfepd). On a working interest basis average daily production in the quarter was 34.6 Mboepd.

Financial Position

Total capital expenditure in the Third Quarter amounted to $55.4 million, of which $41.7 million was spent on development and $13.7 million on exploration activities. In the period January 1, 2008 to September 30,2008 capital expenditure amounted to $147.4 million, of which $94.4 million was spent on development and $53.0 million on exploration activities.

Melrose remains in a well funded and sound financial position and there have been no major changes in its balance sheet since the publication of the 2008 Interim Results. Group net debt at 30 September was $407.0 million. Increased bank facilities were put in place in June 2008 with the IFC and a syndicate of eight commercial banks. The senior facility has a facility amount of $440 million and the subordinated facility has a facility amount of $70 million. Both facilities remain fixed until 2012 and then amortize with final repayment due in December 2014. Availability under the borrowing base calculation for the senior facility currently exceeds the facility size and Melrose would be in a position to consider increasing the size of the senior facility in the future if required.

The existing loan facilities, coupled with good levels of cash generation from the business, will ensure that the Company is able to finance its planned investment programme going forward. The fall in the oil price has resulted in a decrease in revenue in the Third Quarter compared with the second quarter of the year. Melrose benefits from a number of advantages in the current lower oil price environment. Firstly, approximately 74% of Melrose’s net production in the Third Quarter was gas which was sold at fixed contracted prices. Secondly, under the terms of Melrose’s production sharing concessions in Egypt Melrose has a higher entitlement to production at lower oil prices. Thirdly, and most importantly, Melrose is the operator of its major properties. This gives Melrose the ability to determine the amount and timing of its capital expenditures in the light of available resources.

During the Third Quarter, the Company announced a maiden interim dividend to shareholders of 1.2 pence per share which was paid on October 17, 2008.

Outlook

In Bulgaria, pending receipt of the final approval from the Bulgarian authorities for the conversion of the Galata gas field as a gas storage facility, the Company has reduced the Galata production rate to around 11 MMcfpd and expects to cease production from the field at the end of this year to ensure sufficient gas is left in the reservoir to implement the project.

Because of this and some minor operational delays in Egypt, the Company previously announced last month that it believes it is prudent to reduce its 2008 net entitlement production guidance from 19.2 Mboepd to 18.3 Mboepd. The revised 2008 production guidance equates to 36.3 Mboepd on a working interest basis.

The result of the exploration programme in Bulgaria and reserve additions in the USA put Melrose on track for a strong performance in reserves replacement in 2008. The development projects which comprise the majority of Melrose’s capital expenditures are on schedule which is positive for production expectations in 2009 and beyond.

In the coming few months Melrose has an active drilling program. In Egypt the North Dikirnis No.1 exploration well is currently drilling and an exploration well at East Dikirnis (also known as North Tariff) is planned before year-end. In Bulgaria the re-drill of the Kavarna No.1 will be followed by an appraisal well on the Kaliakra structure. In East Texas, the Nunan No.1 well, which has multiple pay targets, is expected to spud later this month and will be followed by the Ramsey No.1 well which is twinning a well drilled by the previous operator and which discovered the target formation.

Commenting on this report, David Thomas, Chief Executive, said, “Melrose continues to make good progress in all three of our principal areas of operation. In the current environment we are seeing the benefit of our solid production base and of the established development upside in our properties. Drilling success has again demonstrated our ability to add value for the Company through exploration and with our current resources and asset portfolio we are well positioned to provide value growth for our shareholders.”

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘RIGZONE’

Posted in ALGERIA, BULGARIA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, EGYPT, FINANCIAL CRISIS 2008/2009, FRANCE, FUELS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, PETROL, THE FLOW OF INVESTMENTS, THE WORKERS, USA | Leave a Comment »

MELROSE TOUTS ACTIVE DRILLING PROGRAM IN EGYPT, BULGARIA & US

Posted by Gilmour Poincaree on November 15, 2008

Thursday, November 13, 2008

Melrose Resources plc

MELROSE RESOURCES

Melrose Resources has issued its Interim Management Statement to cover the period July 1, 2008 to September 30, 2008 (“the Third Quarter”) and up to date. This information is provisional and unaudited and may be subject to further review.

Exploration

In October Melrose announced the success of the Kavarna No.1 exploration well, which was drilled approximately 7 km to the east of the Melrose-operated Galata gas field, offshore Bulgaria. The well

was drilled to total depth of 2,899 feet and encountered the top of the Paleocene reservoir target at a depth of 2,628 feet. The mud log obtained while drilling established that the reservoir formation was well developed and gas-bearing and the initial reserves estimate for the discovery is 24 Bcf.

The new discovery is located between the Galata field and the Kaliakra discovery which was announced earlier this year and which is estimated to contain reserves of up to 47 Bcf. Three future prospects exist on the same geologic trend and are candidates for drilling in 2009 and 2010.

Prior to completing the well, a strong gas influx occurred in the Kavarna No.1 well and for safety reasons it was necessary to plug the well which will now be redrilled. Subsequently an appraisal well will be drilled on the Kaliakra discovery to test for the significant reserves upside in the structure. First production is expected from the two discoveries in the second half of 2009 and 2010, respectively.

Development

Melrose is continuing with its active development program in Egypt. The West Dikirnis Phase II development project is progressing well with all initial design work complete and all major procurement contracts placed. The project is on schedule for the delivery of first LPG and gas reinjection in mid 2009. Also in Egypt, production was re-instigated from the Qantara field in October and the development projects at East Abu Khadra, North East Abu Zahra, South Zarqa and Damas are ongoing with planned first production on dates between December 2008 and September 2009.

In the USA, Melrose has continued with the development project on its fields in the Permian Basin in West Texas and New Mexico. A total of 42 new wells have been drilled to date and injection of water as part of the secondary recovery project in the Jalmat field has commenced.

In Bulgaria, the project to convert the Galata gas field to a gas storage facility is moving forward and discussions are continuing with the Bulgarian authorities to define commercial terms. First injection in the facility is expected in mid 2009.

Production and Product Prices

Melrose’s net entitlement production in the Third Quarter totalled 6.0 Bcf of gas and 357 Mbbls of oil and condensate, representing an increase of 6% compared with the same period in 2007. Average daily net entitlement production in the quarter was 14.8 Mboepd (88.9 MMcfepd). On a working interest basis average daily production in the quarter was 34.6 Mboepd.

Financial Position

Total capital expenditure in the Third Quarter amounted to $55.4 million, of which $41.7 million was spent on development and $13.7 million on exploration activities. In the period January 1, 2008 to September 30,2008 capital expenditure amounted to $147.4 million, of which $94.4 million was spent on development and $53.0 million on exploration activities.

Melrose remains in a well funded and sound financial position and there have been no major changes in its balance sheet since the publication of the 2008 Interim Results. Group net debt at 30 September was $407.0 million. Increased bank facilities were put in place in June 2008 with the IFC and a syndicate of eight commercial banks. The senior facility has a facility amount of $440 million and the subordinated facility has a facility amount of $70 million. Both facilities remain fixed until 2012 and then amortize with final repayment due in December 2014. Availability under the borrowing base calculation for the senior facility currently exceeds the facility size and Melrose would be in a position to consider increasing the size of the senior facility in the future if required.

The existing loan facilities, coupled with good levels of cash generation from the business, will ensure that the Company is able to finance its planned investment programme going forward. The fall in the oil price has resulted in a decrease in revenue in the Third Quarter compared with the second quarter of the year. Melrose benefits from a number of advantages in the current lower oil price environment. Firstly, approximately 74% of Melrose’s net production in the Third Quarter was gas which was sold at fixed contracted prices. Secondly, under the terms of Melrose’s production sharing concessions in Egypt Melrose has a higher entitlement to production at lower oil prices. Thirdly, and most importantly, Melrose is the operator of its major properties. This gives Melrose the ability to determine the amount and timing of its capital expenditures in the light of available resources.

During the Third Quarter, the Company announced a maiden interim dividend to shareholders of 1.2 pence per share which was paid on October 17, 2008.

Outlook

In Bulgaria, pending receipt of the final approval from the Bulgarian authorities for the conversion of the Galata gas field as a gas storage facility, the Company has reduced the Galata production rate to around 11 MMcfpd and expects to cease production from the field at the end of this year to ensure sufficient gas is left in the reservoir to implement the project.

Because of this and some minor operational delays in Egypt, the Company previously announced last month that it believes it is prudent to reduce its 2008 net entitlement production guidance from 19.2 Mboepd to 18.3 Mboepd. The revised 2008 production guidance equates to 36.3 Mboepd on a working interest basis.

The result of the exploration programme in Bulgaria and reserve additions in the USA put Melrose on track for a strong performance in reserves replacement in 2008. The development projects which comprise the majority of Melrose’s capital expenditures are on schedule which is positive for production expectations in 2009 and beyond.

In the coming few months Melrose has an active drilling program. In Egypt the North Dikirnis No.1 exploration well is currently drilling and an exploration well at East Dikirnis (also known as North Tariff) is planned before year-end. In Bulgaria the re-drill of the Kavarna No.1 will be followed by an appraisal well on the Kaliakra structure. In East Texas, the Nunan No.1 well, which has multiple pay targets, is expected to spud later this month and will be followed by the Ramsey No.1 well which is twinning a well drilled by the previous operator and which discovered the target formation.

Commenting on this report, David Thomas, Chief Executive, said, “Melrose continues to make good progress in all three of our principal areas of operation. In the current environment we are seeing the benefit of our solid production base and of the established development upside in our properties. Drilling success has again demonstrated our ability to add value for the Company through exploration and with our current resources and asset portfolio we are well positioned to provide value growth for our shareholders.”

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘RIGZONE’

Posted in ALGERIA, BULGARIA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, EGYPT, FINANCIAL CRISIS 2008/2009, FRANCE, FUELS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, PETROL, THE FLOW OF INVESTMENTS, THE WORKERS, USA | Leave a Comment »