Merlon International, Inc.

Merlon and its predecessor companies have operated successfully in Egypt since the early 1980s. Merlon Petroleum Company operated the Qantara, Mansoura, and Southeast Mansoura Concessions in the Nile Delta region of Egypt and was subsequently sold to Melrose Petroleum in 2006. Prior to that, members of Merlon’s management team led Phoenix Resource Company which discovered the prolific Qarun and Khalda fields in the Western Desert. Phoenix was sold to Apache Corporation in 1996 and was Apache’s initial entrance into Egypt.

Currently, all of Merlon’s oil and gas assets are located within the El Fayum Concession located in the Western Desert. As is customary in Egypt once production is established, activity is conducted through a joint venture operating company (Petrosilah – est. 2010) in partnership with EGPC (the Egyptian National Oil Company).

The El Fayum Concession is governed pursuant to the terms of a production sharing contract with the Arab Republic of Egypt. Merlon International, LLC’s wholly owned foreign subsidiary, Merlon Petroleum El Fayum Company (MPEFC; Cayman Corp.), is the representative party to the contract as operator with 100% working interest.

Merlon International, LLC, is headquartered in Houston, Texas, while Merlon Petroleum El Fayum Company and the Petrosilah joint venture are based in Cairo.

Merlon International, LLC, is majority owned by funds of Yorktown Energy Partners, LLC, based in New York, New York.