merlon petroleum

Merlon International is an oil and gas E & P company actively exploring for oil and gas in the Western Desert of Egypt and the Gulf Coast of Texas. Corporate Profile Q2 2010 In Egypt our activities are focused on the El Fayum Concession. The El Fayum Concession is located about 70 km southwest of Cairo. The company currently has three rigs under contract in the concession. The main exploration targets are the Cretaceous-aged Abu Roash and Bahariya formations. Significant discoveries have been made in the Silah, Tersa, and Kahk Fields over the past 20 months with production and sales commencing in September, 2009. In 2010, we expect to drill 10-15 wells continuing with our focus on exploration and delineation. In addition to our Egyptian operations, we have also identified a prospective area in Liberty County, Texas, located in the onshore Texas Gulf Coast region. The area is on trend and in geographic proximity to the exploration and development activities of Merlon Petroleum Company, one of our predecessor companies. In 2009, we completed the acquisition and preliminary processing of a 54 square mile 3-D seismic program. We expect to begin exploration drilling in 2010. Our main exploration targets are in an Eocene-aged trend with primary targets in the Yegua and Lower Cook Mountain formations. The company has fully staffed exploration and operations offices in Houston, Texas and Cairo, Egypt with the company’s headquarters located in Houston. The core management team has an extensive record of success both in the U.S. and abroad with well over three centuries of combined experience in the oil and gas industry.