David Thomas, chief executive of Melrose Resources, said the oil and gas independent was poised to step up a division helped by strong organic growth in operations in places like Egypt and the United States.

David Thomas, chief executive of Melrose Resources, said the oil and gas independent was poised to step up a division helped by strong organic growth in operations in places like Egypt and the United States.

Thomas, who took charge of Melrose in June, said the company was on the cusp of a transformation in its finances as big increases in production sustained greater exploration activity, which could generate further growth.

Confirming that he had no plans to move Melrose's headquarters from Edin- burgh, Thomas said the expected start of oil production from the West Dikirnis find in Egypt this month would be a company-changing event.

While Melrose has to sell the gas it produces at fixed prices the company will be able to sell more valuable oil at market rates.

With crude currently fetching around $100 per barrel the 10,000 barrels daily production expected from West Dikirnis will be a big money-spinner.

The start of production from the West Khilala gas field in February also provided a boost.

The revenues from the fields will help Melrose fund an extensive drilling programme covering two onshore blocks in the Nile Delta, on which it has identified around 30 prospects and leads.

As exploration firms have enjoyed a high success rate in the area, this will be relatively low risk work.

In the US, Melrose is set to start a programme of infill drilling and water injection which could significantly boost production of oil on its acreage.

It is planning to drill two appraisal wells in East Texas.

While Melrose recently shelved a 250m (£175m) bond offering after the credit crunch forced up borrowing costs, Thomas said expected developments in Egypt and the US should allow the company to reach the next stage of its corporate evolution.

"We have come to the point where there is going to be a step change in financial capacity, which was a reason why I came to the company," Thomas told The Herald.

He said Melrose had no need to complete any acquisitions.

The company is also working on plans to generate more value from its acreage in Bulgaria.

Following an unsuccessful deepwater exploration drive launched before Thomas joined, Melrose has refocused activity on shallow waters.

It has signed a memorandum of understanding with state-owned Bulgargaz to assess the feasibilty of using the Galata gas field for gas storage.

Thomas said Melrose would also consider higher-risk exploration work, in areas like the Mesaha concession in southern Egypt and on licences it won in south-east Turkey, in partnership with other firms.

He said Edinburgh was a good base for Melrose.

The company could recruit from a strong pool of specialist staff. The quality of life in the city boosted retention rates.

Last month Keith Morris, analyst at Evolution Securities, said Melrose's Egyptian focus could make it an attractive bid target.

Chairman Robert Adair's family own 52% of the shares in Melrose.