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. 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 has a 100% interests, in the Qantara, El Mansoura and South East El Mansoura concessions, all allocated in the onshore Nile Delta. 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. IFC has been invited to participate in the increase of both the senior debt facility from $290 million to $350 million, as well as the mezzanine financing from $10 million to $35 million, by providing up to $20 million to help finance the project. The utilization of the IFC funds will target investments in Bulgaria and Egypt.