U.K. independent oil company Melrose Resorources has been stung by first-half 2007 exploration costs which forced a net loss after tax despite revenues that rose 49 percent.

The after-tax loss of $41.3 million glared against the year-on-year result of $2.9 million. Exploration costs reached $43.6 million during the half, with seven wells in Egypt alone.

With gas production rising by some 12 million cubic feet to 77.6 MMcf on Egyptian throughput, turnover was up 49 percent to $75.8 million. Company chair Robert Adair said more intense drilling was in the cards for the Nile Delta.

New chief exec, David Thomas — of Conoco and Eni renown — will oversee the putting into production of West Khalila No. 5, 10,000 barrels per day of West Dikirnis oil in October, a production facility and 7 MMcfd from Salaka No. 1.