Company Information for Melrose Resources plc

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Company Statement

Melrose Resources plc is an oil and gas exploration development and production company with interests in Egypt, Bulgaria, the US, France and Turkey. Melrose has a balanced portfolio of producing assets, development projects and exploration interests. The Group's activities range from frontier exploration in Upper Egypt to mature enhanced recovery projects onshore in the USA. Significant production is generated mainly in Egypt but also in the US. There is nears term production in Bulgaria

Melrose was founded in the 1990's and was listed on the Main Market of the London Stock Exchange in 1999. In 2008, Melrose was admitted to the FTSE 250 share index.

The company's strategy is to maintain a balanced portfolio of production, development and exploration assets in politically stable and low cost environments. Melrose aims to hold material working interest positions, preferably as field operator, in upstream assets that offer significant upside potential through exploration or field development.

Operations and Technology

Egypt
Following the acquisition of Merlon Petroleum in June 2006, Melrose now has 100 per cent interests in two large exploration concessions (combined area approximately 4,200km2) and eighteen development leases in the Nile Delta. Since these concessions were first awarded in 1998, over 1 Tcfe of reserves have been discovered on the acreage. There is also exploration acreage in southern Egypt.

Bulgaria
Melrose has 100 per cent interests in production concessions offshore Bulgaria.

In 2003/2004 Melrose developed and brought on production the Galata Gas Field, which was the first offshore gas field development in Bulgaria. Melrose commissioned and installed all the required infrastructure to bring the gas to the Bulgarian domestic market. The Galata Field produced  64 Bcf of gas  by the end of 2008. Production has ended at Galata and it is being turned in to a gas storage facility. New gas developments are taking place in the Kaliakra field which has 57 bcf of reserves and the Kavarna field with 19 bcf of gas reserves both of which are close to the Galata field.

US
Melrose has .approximately a 100 per cent interest in a large acreage position in the Permian Basin in Texas and New Mexico. These are mature oilfields which still have significant undeveloped potential through the application of enhanced oil recovery programmes. These enhanced recovery projects offer lower risk methods of increasing production levels. Over the last five years Melrose has established a record of successful exploitation with production increasing by nearly 100 per cent  and significant reserves additions. With successful implementation of the enhanced recovery programmes over the next few years, Melrose has a production target of 2,500 - 3,000 boepd.

Turkey
In 2007, Melrose acquired a 67 per cent interest and operatorship of an exploration concession in the South Mardin Basin, Turkey, on the Syrian border. This frontier exploration concession comprises 8 blocks totalling 3908 km². The concession covers a large unexplored Palaeozoic sub-basin on the northern margin of the Arabian Plate. The Area is under-explored although the data which is available in the region indicates the presence of good sandstone reservoir sections within the Palaeozoic sequence and of potentially large structural closures.

Melrose, as operator, intends to commence exploration activities through the acquisition of seismic and geological data which will be thoroughly analysed with a view to selecting a potential well location in 2010 or 2011.

France
Melrose has a 100 per cent interest in the Rhône Maritime concession, which covers an area of approximately 12,500 km² in the Rhône delta in the French Mediterranean. This is largely unexplored acreage in deep water. The acreage is now covered by 2-D seismic and some very large structures, with 10 Tcfe potential, have already been identified.

Geographical Spread

Operational highlights for the year ended 31 December 2008:

23% increase in average daily net production to 18.506 boepd (2007: 15,015 boepd)

290% reserves replacement ratio with net entitlement reserves as year end of 66.6 MMboe (2007: 53.7 MMboe)

Four new Egyptian developments initiated
US Permian Basin infill drilling and waterflood progressed (58 wells drilled)

Bulgarian gas storage project progressed with first injection expected in 2009

Planned acquisition of new development and exploration assets offshore Romania
Five exploration discoveries (3 Egypt, 1 Bulgaria, 1 USA)

Board of Directors and Key Management

Robert F M Adair	Executive Chairman
David H Thomas	Chief Executive
Diane M V Fraser	Finance Director
David Archer	Operations Director
Anthony E Richmond-Watson	Non-executive Deputy Chairman
James D Agnew	Non-executive Director
William P Wyatt	Non-executive Director
Dr Ahmed L Kebaili	Non-executive Director
Dr Alan J Parsley	Non-executive Director

Company Address Exchange Tower 19 Canning Street Edinburgh, United Kingdom EH3 8EG Telephone: (44) 131 221 3360 Facsimile: (44) 131 221 3361 Email: info[at]melroseresources.com Website: http://www.melroseresources.com

Additional Address/Key Contact Registered Office: No. 1 Portland Place London W1B 1PN Registered in England No: 3210072 Contact: Alasdair Robinson; Group Company Secretary US Office 1000 W Wilshire, Suite 223 Oklahoma City Oklahoma 73116 Telephone: (1) 405 848 4012 Fax: (1) 405 848 3993  Bulgaria Office 32 Marko Balabanov Street Varna Bulgaria Telephone: (359) 52 699 556 Fax: (359) 52 601195  Egypt Office 3/C Lasilky Zone Ahmed Kamel Street New Maadi Cairo 11431 Egypt Telephone: (202) 2520 3835 Fax: (202) 2517 2529

Shareholder Capital Shares in issue;114.7m

Annual General Meeting June

Year End 31 December

Nominated Brokers Brewin Dolphin Securities Oriel Securities Collins Stewart

Major Shareholders

Robert Adair (dup)	58,191,929	52.86
Skye Investments Limited (dup)	57,391,423	52.13
Caledonia Investments PLC	11,197,566	10.17
AXA SA	6,413,317	5.83

Related News

07/07/10 - Melrose Resources Hires Advisors As It Mulls US Divestment
27/05/10 - Melrose Resources More Than Meets Production Targets in First Quarter 2010 While Expanding Its Horizons On Exploration Project
01/03/10 - Melrose Resources Meets Production Targets As Its Egyptian Work Programme Continues To Yield Additional Barrels
09/02/10 - Melrose Resources Announces A New Exploration Discovery In Egypt
18/12/09 - Melrose Resources Lifts 2010 Production Guidance And Ups Its Exploration Spend
25/11/09 - Interim Management Statement From Melrose Resources Ups The Production Guidance Figure for 2009

Most Recent Statement

30/07/10 - Kavarna East Gas Discovery and Exploration Update
16/07/10 - Appointment of broker
06/07/10 - New Exploration Licences and Operations Update
24/05/10 - Directors' Share Purchase
19/05/10 - Interim Management Statement
12/04/10 - Director/PDMR Shareholding