Melrose Resources, the oil and gas exploration company, saw production growth when it unveiled full-year results yesterday. Melrose explores in Bulgaria, Egypt and the US. Average production rates were strongly up in Bulgaria and Egypt. Yesterday, the company spoke of "significant discoveries" in Egypt, the first oil discovery in the Nile Delta and continued exploration in Bulgaria - although production will decline at the main Galata gas field after 2007. Those discoveries prompted management to set ambitious targets. Overall, sales were up 60 per cent to $94.5m (£54m) and profit was $31.8m ($11.1m losses). Against that were the failures of wells in North Aga and Biyala in Egypt. Long-term investors are well versed to riding the risks associated with exploration companies. The company lost 8 per cent of its share price in November after a Bulgarian well failed to find oil and gas. Then, the price was 348p. At the beginning of February, they reached a peak of 445p. Its shares were down yesterday 8½p to 373p. Yet Numis set a price target of 465p - though this stock is not for the faint-hearted. Roger Blitz