British oil and gas explorer Melrose Resources (MRS.L:Read More">Quote) said on Friday it made a new gas discovery at its Kavarna East No.1 well in Bulgaria.

Melrose said the well encountered a net gas pay -- which refers to the portion of an oil reservoir that contains economically producible oil -- of 89 feet.

The preliminary reserves estimate for the discovery is 12 billion cubic feet of gas (bcf), in line with pre-drill expectations, Melrose said.

The company, which has operations in Egypt, Bulgaria, Romania, France and the United States, also said it agreed to farm-down its interest in the Rhone Maritime block, offshore France, to Noble Energy Inc .

Under the agreement, Melrose , which currently holds a 100 percent working interest in the block, will retain a 27.5 percent interest, with Noble acquiring the balance and assuming operatorship.

Shares of Melrose were down 1.7 percent at 313.5 pence at 0743 GMT on Friday on the London Stock Exchange. Source; Reuters: Balkans.com