LONDON (ShareCast) - Oil and gas firm Melrose Resources has made a successful test drilling of its Holmes No. 4 appraisal well in East Texas.

Strong gas shows were found during drilling of the well, and the discovery is estimated to contain probable reserves of 10.2 billion cubic feet (bcf).

In Egypt, drilling at the company’s Ar Rub No. 1 exploration well revealed two potential reservoir intervals within the target formation. The first has an apparent net pay of 53 feet with an average porosity of 21% and water saturation of 35%. The second interval has an apparent net pay of 10 feet with a porosity o 10% and water saturation of 43%.

The company is awaiting further test results to confirm whether the two zones are capable of producing commercial flow rates.

Elsewhere in Egypt, the Qantara No. 4 well has been cased prior to production testing but the East Sindy No. 1 exploration well has been plugged and abandoned.

“We are very pleased with the results from the Holmes No.4 well, which demonstrate that there is still significant untapped potential in this mature producing area,” said David Thomas, chief executive of Melrose.

“We are keen to pursue our exploration programme there later this year when we plan to drill two deep gas prospects. The Ar Rub No.1 well in Egypt also appears interesting and we look forward to flow testing the well over the next few weeks,” Thomas added.

• News Channel