UPDATE 2-Melrose Resources reserves rise in Bulgaria

* Says likely reserves of 57 Bcf at Kaliakra * Ups combined reserves estimate to 100 Bcf * In talks with new Bulgarian govt on Galata project

* To spend 60-65 pct of $165 mln investment in Egypt

* Shares rise 3 pct (Recasts; adds CEO, broker comments)

By Tresa Sherin Morera

BANGALORE, Aug 11 (Reuters) - Oil and gas explorer Melrose Resources Plc (MRS.L) said it successfully drilled a second well in the Kaliakra field at its exploration license in the Black Sea, offshore Bulgaria, raising its combined reserves estimate to 100 billion cubic feet.

The drilling results indicate that the Kaliakra field's most likely reserves are 57 billion cubic feet (bcf) and confirmed the Kavarna field reserves of 24 bcf, Melrose Resources said.

"We believe that the discovery of further gas in close proximity to the existing Melrose-operated Galata platform helps de-risk the development of the Kavarna and Kaliakra gas fields," Numis analyst Sanjeev Bahl said in a note.

Bahl has an "add" rating on Melrose Resources stock.

The company would either develop Kavarna this year and Kaliakra early next year or might develop both fields together in the second quarter next year, and targets production in the third quarter, it said.

"The sort of production rate that we think we could get from the two wells, one on each field, would be say 50 million cubic feet per day," Chief Executive David Thomas told Reuters.

"We have another well on Kaliakra and if we choose to complete that, we could probably get 60 million to 70 million cubic feet per day for the initial rate."

The company also said it was in contact with the new Bulgarian government to facilitate the agreements required to begin the Galata gas storage project.

The project was delayed by a few months due to elections.

"We don't have a firm timing on when the approval would take place. We had expected this to take place in the third quarter but since we are starting with a new administration, there could be delays on that," Thomas said.

EGYPTIAN PUSH

Melrose Resources, which had planned to invest about $165 million in its core area assets in 2009, said it expected to spend about 60 percent to 65 percent of this amount in Egypt.

"We have a very significant set of producing fields in Egypt producing about 260 million cubic feet of gas per day and we have a major investment program running there," CEO Thomas said.

The company had in May raised its production forecast for 2009 by about 5 percent to 15,700 barrels of oil equivalent per day reflecting the continued strong performance from existing Egyptian fields.

Melrose Resources shares were up 2 percent at 321.4 pence at 1155 GMT on the London Stock Exchange. They touched a high of 325 earlier in the session. (Editing by Unnikrishnan Nair and Gopakumar Warrier)