Oil and gas exploration firm expanding into new Romanian prospects
The Edinburgh-based company said recent unrest in Egypt, which accounts for 95 per cent of its production, had highlighted a need to expand into other areas.
Melrose brought two new gas fields under the Black Sea in Bulgarian territory online last November.
The firm was also awarded two high quality Romanian offshore exploration licenses at the end of last year.
Egypt, which represents 95 per cent of Melrose's total production last year, continues to perform well after five new wells in the Nile Delta came on stream in 2009.
Melrose said it achieved a new production record last year, averaging 41.1Mboepd (thousand barrels of equivalent per day) for the year, which includes the new Kavarna and Kaliakra fields brought on stream last November.
The firms gross profit margin has also increased to $11.59 per barrel of oil from $6.64 per barrel of oil in 2009.
Melrose executive chairman, Robert Adair said: "Melrose delivered strong operating performance during the year, establishing a new production record and successfully completing the Kaliakra and Kavarna gas field developments offshore Bulgaria.
"These new fields represent an important addition to our existing asset base, diversifying the portfolio and doubling the Company's expectedcash generation over the next few years.
"The Company's solid production platform, coupled with a strengthening financial outlook, means that we are well positioned to progress our high potential impact exploration initiatives in Egypt, Turkey,Bulgaria, Romania and France and to selectively pursue other business development opportunities."
Revenues were up seven per cent to $240 million compared with $224 million a year earlier.
Pretax profits last year were largely flat at $30 million for the year to December compared with $31million a year earlier.
Edinburgh-based Melrose said after stripping out the cost of selling its mature well assets in the US Permian Basin in West Texas and East New Mexico, pre-tax profits were up 120 per cent to $68 million.
Melrose reported a net loss of $31.9 million on the sale of those assets to Quantum Resources Management in an $80million cash deal last December.
It said it was using the money from the sale to pay down debt, which it has reduced to $419 million from $474 million in 2009.