Melrose II

completed

Melrose Resources plc (Melrose or the company) is an Edinburgh based oil and gas exploration 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. Until recently Melrose’s partner (50%) and the operator in all three concessions was Merlon Petroleum company, a privately held US company with assets in Egypt and the United States. Both Melrose and Merlon are existing IFC clientsOn June 29, 2006 acquired Merlon, thus increasing its interest to 100% in all three Egyptian concessions, and effectively doubling its Egyptian reserves.The proposed project comprises: - capital expenditures for Egypt and Bulgaria primarily over the next 18 months; - financing of Merlon’s acquisition; and- financing of repayment Melrose’s existing debt.IFC has been requested to provide a revolving credit facility to help finance the project. The utilization of the IFC funds will target investments in Bulgaria and Egypt.