The Edinburgh-based Melrose Resources said in a media statement that it will focus its oil exploration activity on prospects in Bulgaria, Romania and Turkey.

The Jupiter jack-up rig has been mobilised to the Galata block, offshore at the northern coast of Bulgaria, and started drilling operations on the Kavarna, the media statement said. Reportedly, the well will test a low-risk prospect between the Kavarna and Kaliakra fields and which contains gross recoverable prospective resources of 12 Bcf and a chance of success of about 80 per cent.

"We are delighted to have been the successful bidder for two high-quality exploration blocks offshore Romania and this represents an important milestone for the company as we seek to establish the country as a long-term core investment area," David Thomas, Melrose Resource's chief executive, said.

In the event of success, the discovery would be developed at minimal cost via the Kavarna field flow line.

Melrose has won the right to explore in 2000 sq km of Black Sea shallow waters off the coast of Romania. This includes one area where oil has been discovered but not extracted.

On June 30 2010, the Romanian authorities announced the results of the Romanian 10th licensing round, hence notifying Melrose that it was the successful bidder for two shallow water blocks, notably EX-27 and EX-28. The Scottish company had bid for the blocks in partnership with Petromar Resources S.A. and will hold an 80 per cent working interest in the concessions.

Melrose plans to spend 40 million pounds sterling over the first three years of the concession.

According to the media statement, it was also announced that in parallel with extending the scope of operations in Bulgaria, Romania and Turkey, Melrose is looking to sell its interests in Texas and New Mexico within the next nine months.