BULL POINTS:
â– Low cost production and high reserves replacement
â– Stable income from fixed-price contracts
â– Bulgarian gas storage project
â– Exploration potential in Egypt
BEAR POINTS:
â– Profits to be hit this year
â– High borrowings
IC TIP:
Buy
at
287p
Melrose Resources produced 18,500 barrels of oil equivalent per day in 2008 from fields in Egypt, Bulgaria and the USA. But that should be just the start because it looks poised for significant low-risk growth in the short term.