Melrose Resources was the successful bidder for two offshore exploration blocks, EX-27 and EX-28, in the Romanian 10th Licensing Round and that it is making preparations for the potential divestment of its Permian Basin assets in the United States. An update is also provided for the Company's ongoing exploration activities in Bulgaria and Turkey.

Romania On June 30, 2010, the Romanian authorities announced the results of the Romanian 10th Licensing Round and the Company has been notified that it was the successful bidder for two shallow water blocks EX-27 and EX-28. Melrose bid for the blocks in partnership with Petromar Resources S.A. and will hold an 80 percent working interest in the concessions.

The blocks lie to the north-west of the Midia and Pelican concessions in an under-explored area of the Black Sea, which became re-accessible for exploration in February 2009 following the resolution of a maritime boundary dispute between Romania and the Ukraine.

The blocks have a combined area of 2,000 square kilometers and contain the same oil and gas exploration plays as the Midia and Pelican concessions. Initial analysis indicates that the blocks could be highly prospective and may contain significant oil and gas potential. Block EX-27 contains an existing oil discovery, Olimpiskiyi, which was drilled in 2001 but on which there is limited available data.

The concession agreements for the new blocks are expected to be signed towards the end of the year and will have a firm three year initial term followed by an optional three year extension. The firm work program bid for each block comprises 2D and 3D seismic acquisition in Year 1, one well in Year 2 and two wells in Year 3. In due course, the Company may consider reducing its working interest in the blocks and expects to spend a minimum of $60 million on exploration activities during the initial term of the concessions.

Tags: Melrose Resources plc