Melrose Resources PLC (LON:MRS) said its working interest production in 2010 totalled 72.4 billion cubic feet and 2.5 million barrels of oil, condensate and LPG equating to an average daily production rate of 41,100 barrels of oil equivalent per day.
This is in line with the company's latest market guidance figure of 40.7 Mboepd, contained in the November 2010 interim management statement.
The annual production rate represents an increase of 6 percent over 2009 and is attributable to the new fields bought on stream in Egypt during 2009 and 2010, including South Damas which was placed on production in June 2010, and from the Kaliakra and Kavarna fields in Bulgaria which came on stream in November 2010.
On a net entitlement basis, Melrose's production in 2010 totalled 31.0 Bcf of gas and 1.2 MMbbl of oil, condensate and LPG and the average daily production rate was 17.9 Mboepd.
The company's total proved and probable reserves at 31 December 2010 were 105.2 MMboe on a working interest basis. On a net entitlement basis, 2P reserves were 45.9 MMboe as of the same date.
Melrose said it is pleased to note the improving political situation in Egypt and the appointment of the new transitional government earlier this week. During the period of civil unrest in late January and early February, the company experienced no disruptions to its production and drilling operations in the country but, as a precautionary measure, allowed Egyptian staff working in its Cairo office to stay at home for a 4 day period during the public demonstrations.
Melrose has no permanent expatriate management or staff in Egypt, consistent with its operating philosophy of maximising national training and employment opportunities.
In Bulgaria, the early field performance from the Kaliakra and Kavarna fields has confirmed high reservoir productivities and the fields are currently producing at the planned plateau rate of 45 MMcfpd.
In Romania, the company has finalised the terms of the concession agreements for the offshore Blocks 27 and 28 (Muridava and East Cobalcescu) with the Romanian National Agency for Mineral Resources and the agreements are being prepared for signature. Subsequently, they will be passed to the relevant government ministries for ratification.
The 7,500 kilometre 2D seismic survey on the Rhone Maritime concession in France has been completed, and the data will now be processed and interpreted with preliminary results likely to be available in the third quarter this year.
Chief executive David Thomas said: "Melrose had another strong year of production in 2010, which will be supplemented in 2011 by a full year's contribution from the Kaliakra and Kavarna fields in Bulgaria. The cash flow being generated by these fields, coupled with the proceeds from the recent US Permian Basin divestment, provides the company with the capacity to pursue an increasingly active exploration and business development programme and reduce financial gearing."