Melrose Resources announces annual results for the year ended 31 December 2011

Wednesday, Mar 28, 2012

Melrose Resources plc (LSE: MRS) ("Melrose", "the Company" or "the Group"), the oil and gas exploration, development and production company with interests in Egypt, Bulgaria, Romania, France and Turkey today announces its annual results for the year ended 31 December 2011. 

Operational highlights

· average production 34.3 Mboepd on a working interest basis (18.7 Mboepd net entitlement)

· first full year of Kaliakra and Kavarna fields production with 95% uptime

· Muridava and Est Cobalcescu Concession Agreements signed

· Improved pricing secured for Bulgarian gas production

· seismic surveys acquired on the Mesaha, Rhône Maritime and Galata concessions

· East Texan asset divestment completed, concluding the withdrawal from the USA 

Financial highlights

· revenue increased by 21% to $291.0 million (2010: $240.4 million)

· EBITDAX increased by 65% to $248.2 million (2010: $150.7 million)

· profit after tax increased to $51.6 million (2010: $11.7 million loss)

· net debt reduced to $322.6 million (2010: $418.8 million)

· financial gearing reduced to 89 percent (2010: 133 percent)

Robert Adair, Executive Chairman commented

"2011 was an important year for the Company as we saw the impact of the first full year of production from our new Bulgarian fields supplementing our existing Egyptian producing assets. This has driven some outstanding financial performance, allowing us to retire a significant proportion of the Company's debt and reduce financial gearing.  With our positive outlook for 2012, we have recently set a new target to reduce gearing to around 60 percent by the end of this year.

Given the Company's strengthening financial position, we now have increasing capacity to pursue new business opportunities.  Our main focus will be on the acquisition of exploration and development assets in the MENA and Black Sea regions where we can leverage our established relationships and operating expertise.  We look forward to growing as a diversified and well balanced exploration and production company."

Source: Melrose Resources

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