Melrose II Expansion

completed

Melrose Resources plc (Melrose or the company) is an Edinburgh-based oil and gas exploration and production company with operations in Bulgaria, Egypt, France and the United States. Melrose has a balanced portfolio of producing assets, development projects and exploration interests. The company holds a 100% interest in the Bulgarian Galata field through its wholly owned subsidiaries Melrose Resources Sarl and Petreco Bulgaria EOOD, and is also exploring in four adjacent offshore exploration concessions. In Egypt, Melrose currently has 100% interest in the Qantara, El Mansoura and South East El Mansoura concessions, all located in the onshore Nile Delta. Melrose also has mature assets in the Permian basin and in East Texas in the US and exploration assets in offshore France. Due to the global increases in drilling and capital costs in the oil and gas sector, Melrose’s expected capital expenditure plan over the next 12-18 months has increased. The company is planning to support the additional capital expenditure program over the next few years by increasing its current debt facilities, committed in November 2006, by $85 million.