|
|
Article: Melrose Resources unfazed by loss.
- Article from:
- Investors Chronicle - magazine and web content
- Article date:
- March 18, 2008
CopyrightCOPYRIGHT 2008 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
New oil production should make 2008 a transformative year for Melrose. Daniel O'Sullivan
A full-year loss from Melrose Resources reflects a whopping $61m (GBP30m) write-down on its unsuccessful Bulgarian deepwater drilling in early 2007. Finance charges also look high compared with profits, but finance director Munro Sutherland says this reflects debt-funded capital spending to bring Melrose's flagship assets in Egypt onstream. The pay-off should begin as Melrose moves from negligible oil production to a total 1.44m barrels of attributable production in 2008 from its recently-commissioned West Dikirnis field. With operating costs of less than $2 per barrel, this ...