Melrose Resources plc

Melrose Resources plc is an Edinburgh-based oil and gas exploration, development and production company. Melrose with interests in Egypt, Bulgaria, USA, Romania, Turkey and France, with production of 38,600 boepd. (average 2009, working interest). The Company has proved plus probable resources of 68.5 MMboe. (year end 2009, net entitlement). Turnover for 2009 amounted to, $224m with EBITDAX and profit before tax of $178m and $31m respectively.

The Company was listed as the main list of the Stock Exchange in 1999. Melrose appointed Brewin Dolphin as joint broker in 2004 since which time we have assisted in four equity placings in support of the Company’s growth.

The acquisition of Merlon Petroleum for a cash consideration of $265 million was a transformational transaction. Brewin Dolphin was engaged to assist with a placing and open offer which raised £74.9 million, providing Melrose with capital structure to allow for the acceleration of its exploration and development activities. This acquisition cemented Melrose ’s interests in Eqypt and provided exposure to Merlon’s US interests.

Working alongside the Company, Brewin Dolphin’s Natural Resources team helped to prepare the transaction prospectus and develop the investment case for the acquisition as well as the Company’s strategy for managing and developing the assets. The successful marketing of this transaction enabled Melrose to raise funds in line with Brewin Dolphin’s valuation range.

The placing also introduced a range of supportive blue chip institutions onto the share register, many of whom have continued to support the Company and have participated in the Company’s two subsequent fundraisings.

Melrose continues to make good progress in its strategy towards ongoing development activities, to grow production, whilst maintaining the ability to undertake select appraisal and exploration projects.

For further information on this transaction please contact Alex Dewar on 0845 213 2076.