LONDON: Melrose Resources said it expected the average daily production rate in 2010 to be 4 percent higher than the current 2009 market forecast as output from its existing fields in Egypt, United States and Bulgaria is scheduled to come on stream in the second half. The oil and gas explorer also expects a total capital expenditure of about $169 million in 2010. The company said it forecast an average 2010 production of 40,000 barrels of oil equivalent per day (boepd) on a working interest basis, while the market currently expects 38,500 boepd. Melrose said it would set aside 33 percent of its capital investment budget in 2010 for seismic acquisition and exploration drilling, compared with 19 percent allocated in 2009. During the year, we expect to generate significant operating cash flow, which will provide us with a platform to re-focus on exploration and business development initiatives, Chief Executive David Thomas said in a statement. Last month, the company said its third-quarter production rose about 25 percent, driven partly by strong performance from its Egyptian fields, and raised its working interest production forecast for 2009. -Reuters
