STOCKS NEWS UK SMALL-Melrose Resources up on FY output forecast

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09:56GMT 19May2009-Melrose Resources up on FY output forecast

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Shares in Melrose Resources Plc (MRS.L) jump nearly 7 percent after the British oil and gas firm raises production forecast for 2009 by about 5 percent to reflect the continued strong performance from existing Egyptian fields.

Brokerage Collins Stewart raises Melrose Resources' price target to 350 pence from 300 pence, and says it continues to view Melrose as one of the best value stocks in its coverage.

The brokerage, which has a "buy" rating on the stock, says it sees the completion of the South Khilala development work, the Galata Gas storage agreementin Bulgaria and the Romanian farm-in agreement as good catalysts for the company's shares.

To see Melrose Resources' statement please click on [ID:nRnsS4546S]

For more please click on [ID:nBNG126541]

Reuters messaging rm://balachander.surianarayanan.reuters.com@reuters.net

09:37 GMT 19May-Circle Oil up on oil and gas find

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Shares in Circle Oil (COPU.L) jump 12.6 percent after the company discovers oil and gas at its exploration well Geyad-1X in the Kareem Formation sandstones.

Fox Davies Capital says that "the oil is of excellent quality" and repeats its "buy" rating.