The contracts have been signed with state-owned gas utility Bulgargaz EAD and Agropolychim, an independent industrial consumer.
Melrose said the contract nominations reflect a total volume of 12.7bcf and the received price is expected to average $8.32 per mcf (assuming an exchange rate of EUR1.30 per US dollar), as compared to the averaged received price for 2011 of $7.35 per mcf.
Melrose chief executive David Thomas said the new gas sales arrangements represent a material price improvement and will underpin Melrose’s cash generation this year.
"Our Bulgarian and Egyptian revenues will allow the company to pursue an active work program during 2012, whilst continuing to reduce financial gearing to below 60% by the end of the year," Thomas said.
