RNS Number:1804T
Melrose Resources PLC
12 December 2003


For Immediate Release                                          12 December 2003



                              MELROSE RESOURCES PLC


             First production achieved on two developments in Egypt

                    Update on exploration activity in Egypt


Melrose Resources plc ("Melrose") today announces that first production has been
achieved on two of the company's development projects in Egypt. First production
was achieved on the South Batra development on 5 December. Production from the
South Batra No.1 well is currently 30 MMcfd and 500 bcpd. The South Batra No.2
development well is currently drilling and is scheduled to go on production
before the end of January 2004. The agreed gas sales rate for the field in 2004
is 30 MMcfd. Further development wells are scheduled in 2004 in order to raise
field production to 100 MMcfd in 2005. Gross field proved plus probable reserves
are approximately 500 Bcfe.


First production was achieved from the one-well development at Mansouriya on 8
December. Current production is 10 MMcfd which is the agreed gas sales rate for
the field. Melrose holds a 50% interest in both developments through its
wholly-owned subsidiary, Odyssey Petroleum (El Mansoura) Limited.


Further interpretation of existing 2-D seismic over the El Mansoura Concession
suggests that the Miocene channel system in the South Mansoura area has similar
reserve potential overall as the South Batra discovery. The edge of a Miocene
structure was identified on logs of the South Mansoura No.1 Pliocene discovery
well drilled earlier this year and deepened to the Miocene. The Salaka
exploration well, which is scheduled to be drilled in the first quarter of 2004,
will test the Miocene horizon as well as targeting a shallow mid-Pliocene
structure. Also on this concession, the initial interpretation of the new 2-D
seismic which has been acquired is very encouraging. The large numbers of leads
and prospects expected in the shallower Pliocene formation are being confirmed.


On the Qantara Concession, the Qantara No.8 well encountered gas in
non-commercial volumes and has been plugged and abandoned. The focus of activity
on the concession will now move to the shallower Pliocene horizon where a number
of exploration prospects similar to the discoveries made on the El Mansoura
Concession have been identified on 3-D seismic. Melrose holds a 46% interest in
the Qantara Concession through its wholly-owned subsidiary, Odyssey Petroleum
(Qantara) Limited.


Melrose is currently in discussions to obtain debt finance for a planned
significant increase in exploration and development expenditures in Egypt.


Commenting on the news, Robert Adair, Chairman, said:


"It is excellent news that we have achieved first production on two fields
within 10 months of the discoveries being made. Exploration activity on the El
Mansoura Concession continues to gather momentum with the South Mansoura/Salaka
prospect looking particularly promising. A second drilling rig has been
contracted from April 2004. A total of 5 development/appraisal wells and up to 8
exploration wells are planned next year, which promises to be very exciting for
us."


For further information please contact:

Melrose Resources plc
Robert Adair , Chairman                                           01845 537037
David Curry, Chief Executive                                     0131 221 3360
Munro Sutherland, Finance Director                               0131 221 3360

Buchanan Communications
Tim Thompson
Ben Willey                                                       0207 466 5000







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