I have been watching Egdon Resources for a while, and think they may prove to be worth an investment.

I like the idea of a British company finding oil and gas on UK soil, and as Egdon have a site at Waddock X, fairly close to where I live, I have decided to follow their progress.


Egdon has interests in 19 licences in the hydrocarbon producing basins of the UK and France, containing two oil discoveries and a further 48 prospects.

The Company's shares are traded on the Alternative Investment Market of the London Stock Exchange.




OIL AND GAS ASSETS

Egdon holds 19 licences, all of which lie within proven oil and gas producing basins and contain a mix of oil and gas prospectivity. The assets and technical management of the Company are divided into four geographically defined business areas; Southern England, Northern England (and adjacent offshore areas), East Midlands and France.





Company website : http://www.egdon-resources.com

From today's Sunday Telegraph;


Egdon Resources

Take a look at Egdon Resources (33.75p). The Aim-listed oil and gas explorer last month announced a threefold increase in losses to 296,000. This was partly due to one-off costs from its move from Ofex to Aim. Egdon actually ended the period debt-free and with net cash of about 3.7m.

The shares have risen by more than 25 per cent in the past month, but we believe there is more upside. Besides its explorations in the UK and France, Egdon has leased a site on the Isle of Portland in Dorset to create a natural-gas storage site. With UK gas production forecast to decline in the next few years, demand will only increase.

A risky buy.

Why is it risky?
Most of the licences run until 2010,is that long enough and /or can they be renewed?You seem to be a mining expert,Andy and I like the sound of this one...more info,please!
Thankyou.

Ethel,

Early stage company, possibility of failure, but that's the Telegraph's opinion, not mine!

Not an expert, but I have a strong interest in the resource sector, and I'm just trying to expand the range of companies discussed here, for the benefit of all.

I hope to attend a presentation by Egdon next week, so will update the thread if I can attend.

I will also try and locate the Waddock X site in Dorset ia couple of weeks, to gauge progress to date.

Does'nt seem to be much interest from anyone else on MAM..but most mining stocks are down at the moment and everyone is afraid of getting burnt OR they have invested in PET again!
All the EDR charts look good,but hard to tell how high the sp will go at this stage.Like the debt free status.
Hope you get to the presentation and have a nice hols in Dorset!
Sincere thanks.

Ethel,

Thanks, I actually live in Poole, Dorset, although stay in London whilst working.

Waddock X is near Dorchester, so only around 20 miles from my house.

Not sure if there is anything to see there, but I hope to find out after the presentation.

Egdon's price has probably risen, at least in part, due to the recent PR, (featured in Shares and IC) and may well fall back a little once this is over.

Andy - Like the proverbial bad penny I'm here again! I'm interested in dipping my toe into Egdon so would be keen to hear your views. Did you get to the presentation?

queen1,

Yes I went, and I thought Egdon looked reasonably promising, but they are still very much in the exploration stage, so I'm gojng to keep them on my watchlist, but nothing more than that until the current market urmoil settles down.

Their gas storage project at Portland Harbour looks very promising, they will buy cheap gas in the summer, store it 2km below Portland Harbour until the winter, and sell it at the higher winter price.

The only potential drawback was the CEO mentioned it would cost 100 million to set up, quite a sum for such a small company.

Hmm. I like the "feel" of Egdon (I know, hardly a reason to purchase!) However that feeling is backed up by the inevitability of dwindling resource stocks and big-picture planning that, if it comes off, will rocket the company and sp northwards. Admittedly a risk but so's the curry I'm planning to have tonight :-)

Hmmm, nice rise so far today. Anyone know why?

queen1,

EDR have risen nicely recently, currently at the all time high.

i have just looked at 4 junior oil companies at random,and they
are all up on the last 2 months,

ake144,

yes with the higher price of oil and gas, I would think many of them are up in value.

I still prefer producers, or near to production companies over the raw explorers, although | realise I miss some of the early profit that way.

I'm still watching Egdon, but wary of the money required to bring the Portland Bay salt stores into being.

Another nice little move up today :-)

Great day today. Is there some news in the offing.....?

There's definately something brewing...

queen1,

Well it certainly looks like it!

I know they are intending to drill soon, so maybe the price is rising in anticiption?

Well I'm starting to get excited!

I was listening to Radio 5 this afternoon and the Government's Chief Science Officer was on. He spent quite a bit of time discussing the inevitable gas shortages the UK is going to face which will certainly put EDR in a very favourable position.

This is good news:

Egdon Resources Plc ('Egdon' or the 'Company') is pleased to announce that
Dorset County Council have granted planning permission for the drilling of two
wells to appraise the Waddock Cross oil discovery in the PL090 licence within
the county of Dorset where Egdon holds a 45% interest. The first of these
wells, designated Waddock Cross-3, will target an elevated part of the structure
identified on the recently acquired 3D seismic survey. The well will be drilled
from the existing Waddock Cross site and will be the first well of a multi-well
programme planned within Egdon's operated onshore UK licences.

The planned drilling programme also includes two gas exploration wells on the
PEDL068 Licence in North Yorkshire at Kirkleatham-4 and Westerdale-1, and
potentially a second appraisal well at Waddock Cross (Waddock Cross-4). A well
to confirm the thickness and properties of the salt sequence at the proposed
Isle of Portland gas storage site is also programmed, although this is still
subject to planning.

It is anticipated that the programme will commence with the drilling of Waddock
Cross-3 in the fourth quarter of 2005. Long lead items for the programme such
as the drilling rig, casing and well heads are currently being tendered and the
Company will provide further detail on the final timing of the drilling
programme once these tenders have been evaluated and contracts let.

Commenting on the forthcoming drilling activity, Egdon's Joint Managing
Director, Mark Abbott, said,

'With the results of the recently acquired 3D seismic survey and the award of
planning permission we are able to look forward to meeting our objective of
realizing production from the Waddock Cross discovery in the near term.

'In addition this planning consent provides Egdon with a material well programme
enabling us to embark as previously stated on an accelerated phase of drilling
whilst making significant overall cost savings on casing, equipment and
services.'

Thread for the more intelligent.

https://www.moneyam.com/InvestorsRoom/posts.php?tid=8461#lastread

queen1,

I went to Waddock Cross yesterday afternoon, and no sign of any rig or site, just a couple of "site entrance" signs by a hole in the Hedge.

I rang EDR this morning, and they confirm they are tendering for the rig at the moment, and should drill in October, so I will drive past then.

They confirmed that the signs I saw are indeed the entrance to their site, so it's easy to find, just past Laurence of Arabia's old cottage actually!

Splendid! And what a marvellous day today. Where to next? Well the road ahead is long and empty, the sun is shining and there's plenty of gas in the tank :-)

And another cracking day. Pity more people here haven't woken up to the possibilities of EDR.

Queen1,

It's always the quiet threads that do well IMO.

The 'noisy' threads are where the "promotions" are!

I vote we keep this one a quiet one, for now at least.

Well it's still climbing so the quieter the better! Did you ever get in Andy?

queen1,

Sadly not yet!

A brief snippet from Shares Mag today.
===============================

(EDR:AIM) has sealed planning permission from Dorset County Council to drill a couple of appraisal wells on the Waddock Cross discovery.

The programme looks set to get under way later this year and should help the
firm turn the discovery into a producing field sooner rather than later.
and the company hopes that there is more to be found in the southern end of the basin.

Like you say, let's keep it to ourselves....at least until the price hits 1!!

Andy & Q1: How do you imagine you can keep this one secret after mentioning Laurence's cottage and so conjuring up images of Arabian nights and Arab oil. We are watching carefully and wondering if EDG can outpace our front runners, AEX and ULT. And as Kimmeridge is one of my favourite beauty spots, I might easily be tempted to back EDR as well. Meanwhile, will keep watching.
sd.

squidd, welcome! A slightly slower day today but still blue. It's been a marvellous week.

Queen1, squidd,

Here's the map of the area, showing Waddock Cross on the left hand side, and the road junction at Clouds hill, where Lawrence of Arabia's former cottage is located, on the right.

Thanks for the colour Andy. Well, EDR ran out of puff today which I guess is only to be expected. I'm hoping for more blue next week although feel we could stabilize around the 60-65p mark for a while.

Stonking day today so far and over the recent 60-65p range of the last 2 weeks. Is this the start of the next leg upwards?

queen1

No idea, but I will probably buy a few tomorrow or Tuesay, as I feel I should have a stake in a local oil and gas explorer, and there must be a decent chance of a find given the proximity to Wytch Farm.

Bought this one a few months back Andy. Cant see how you are going to keep it a quiet one as Evil K is buying by the lorry load. (star energy is worth a look at too)

Sees you when I get back of holiday. Good luck to holders and potential holders.

cheers GF.

Up again so far today. Definately something in the air. Get in while you can....after having DYOR of course!

GF,

Have a good time!

IF EK is buying as you say, then yes, Egdon won't be quiet for long, as T1ps will mention it at some point.

Tip from Citywire............................

Shrewd Tip: gas storage deal may inflate share price

By: Patrick Sherwen, Deputy Editor

Egdon Resources is an AIM-listed oil & gas explorer that focuses on the area surrounding the UK but has moved into the gas storage market and made some shrewd fans in the process.

In its interim results in April losses tripled to 296,000 from 97,000, which was partly down to the one-off costs of moving from Ofex to AIM. Turnover grew from 61,000 to 203,000. It expects to achieve operating profit in 2006 by which time its UK oil fields, Avington and Waddock Cross, should be in production.

The shares have risen from 30p to 64p this year but a recent deal to enter the burgeoning gas storage market could boost the share price further.

One investor who sees potential is AAA-rated fund manager Giles Hargreave. He added to his Marlborough Special Situations fund's (Marlborough Special Situations) holding at the end of July. As a result it owns 800,000 shares or 1.6% of the company. He also controls 1.69% through his UK Microcap Growth fund (Marlborough UK Micro Cap Growth).

In April Egdon (EDR) announced plans to develop a 10-20 billion cubic feet natural gas storage site in salt caverns on the Isle of Portland in Dorset. It hopes the first cavern will be operation by 2008 subject to permission.

Such a facility would increase the UK's gas storage capacity by 60%. Gas storage is a developing market in the UK, the third largest consumer of gas in the world, as we start to import more gas and produce less. We are expected to be a net importer of gas by 2006 according to Egdon.

The company plans to buy gas when price is low, store it and sell it when it is higher on seasonal and shorter-term cycles.

An interesting benchmark for the value of this project is provided by a recent Scottish Power deal. On 27 July Scottish Power sold a six billion cubic foot gas storage facility at Byley, in Cheshire, for 96 million. Egdon's facility is less advanced in its development and still subject to permission but given its size, a rough calculation suggests it has a potential value of 320 million. This looks interesting when compared with a market capitalisation of 33 million.

There is a risk this facility will not be completed but the company is debt free and has 3.7 million cash on the books, raised in the move to AIM so it has a strong balance sheet. Buy.

cheers GF.

Im suprised no ones buying into this, perhaphs its a little long term.

cheers GF.

GF, excellent City Wire article and spot-on with the risk/reward equation. I've held since the anouncement in April and will continue to do so. Although it's a fairly big "if", if it does get permission and everything goes to plan this really will be a 10-bagger.

Yes It does look like it could be a big bagger Queen1, I just wish they would come out with some news regarding getting this permission. If thats positive watch this one roar ahead.

cheers GF.

The recent big rise in sp of Egdon, is that justified on the licenses or is it speculation of permission for the gas storage & that a big player might pay a good some of money for it? Sorry if I sound ignorant on this but I have been tipped this and need to understand more. What is the likely sp if permission is refused?

Andysmith,

If permision were refused, I would see an immediate substantial fall, unless of course thay have announced some good drilling results form somewhere first.

They are due to drill at Waddock Cross in Dorset anytime now, and I may drive down to check on progress as I live nearby. and know where the site is.

I would have thought that the gas situation in the UK would mean a good chance of a favourable outcome for the gas storage site, but you can never tell.

Any chance of knowing where you received the tip from? (you can use the private message facility if you prefer)

With gas coming increasingly into the frame, I was getting quite excited about EDR until I looked at their web site, only to find that their gas storage caverns do not actually exist at present. They propose to create a series of cavities, each up to 3 billion cu ft, in a layer of salt at 2000m depth, by washing out the salt with sea water. This is a subject I know nothing about, but as a layman, that sounds like a huge tonnage of salt to be removed, possibly with the prospect of increased salinity in the sea around Portland and I can already hear the environmentalists shouting, among other things, about the word heritage status of the surrounding coastline. Is anyone able to give a technical view.

Any ideas why the drop today?

Queen1,

I've been watching, and can'd find anything untoward, I wonder if they have commenced drilling at Waddock X yet?

Andy, not that I've picked up yet. Longer term, I'm still trusting my gut on this one and think it will make me a lot of money. In the current climate I would be very surprised (and a lot poorer!) if they don't get the go-ahead for the gas storage.

Queen1,

Me too!

And that has the real potential here, albeit sometime further down the line in around two years I believe.

http://www.interconnector.com/Enhancement/CapacityDemand.htm

cheers GF.

Excellent day for EDR after some pretty heavy falls recently:

Egdon Resources Plc (AIM : EDR), the UK focused energy Company is pleased to
announce its Preliminary Results, for the year ended 31 July 2005.

Operational Highlights

Confirmation of oil discovery at Waddock Cross
Multi-well drilling programme to commence in November 2005
Portland Gas Storage Project progressing well - now targeted to store
up to 35 Bcf
Avington drilling anticipated to recommence in near future
Transfer from OFEX to AIM completed in December 2004

Financial Highlights

Placing in December 2004 - raising 4.5 million
Loss for the period 420,617 (2004: 246,350)
Loss per share 0.92p (2004: 0.72p)
Net Cash position of 2.95 million (2004: 552,405)

Commenting on the results, Philip Stephens Chairman of Egdon, said:

'The Company has made good progress since joining AIM in December 2004, and we
are looking forward to an active phase of exploration and appraisal drilling
which should add material value to the Company.

'The potential of our gas storage project at Portland will also drive
shareholder value.'

Quote of the week in the Business section of the Sunday Times comes from Sir Digby Jones, blasting the Government for failing to ensure enough storage capacity for imported gas: "If there is a harsh winter...it will be back to the days of three and four-day week."

With heavyweights like SDJ highlighting the problem it can only be good for EDR...

queen1,

It certainly can!

Nice RNS for the holders here, well done to all.

Andy

Belief from the directors as well. I feel momentum building here:

Egdon Resources plc (the 'Company') was informed yesterday that Non-Executive
Director Walter Roberts yesterday purchased 150,000 ordinary shares in the
Company at a price of 63.83p each and 50,000 ordinary shares at 70.5p each. Mr
Roberts is now beneficially interested in 776,750 ordinary shares, representing
1.5% of the current issued share capital.

queen1,

a nice write up at oilbarrel.


Egdon Resources Share Price Perks Up On The Back Of A Multi-Well Drilling Programme

Shares in AIM-listed Egdon Resources, which is primarily a UK onshore oil and gas explorer and putative gas storage group, moved strongly ahead of the results announcement recently.

It was not anything in the results for the year ending July 31 which caused the stir however, but some announcements which accompanied the results. Losses for the period were 420,617 (2004: 246,350). These reflected the costs of graduating from the small Ofex market to the more liquid AIM.

Egdon now has 20 licences with 50 drillable prospects. The excitement in the share price was caused by three announcements.

First, the company was able to announce confirmation of an oil discovery at Waddock Cross, the third of its wells and the second successful one. The oil in place estimate at Waddock Cross has increased to 42 million barrels up from 20 million barrels.

Second, the company has announced an 11 well back-to-back drilling programme starting next month and beginning with Waddock Cross-3.

Third, the company has increased the target for its Portland Gas storage project to store up to 35 billion cubic feet of gas against 20 billion cubic feet originally. Also there is expected to be drilling on Avington, Egdons original discovery, after much delay due to a change of operator.

The company has added a major new area of business to its oil and gas operations through the entry into the UK gas storage market via the Portland Gas Storage Project. Gas would be stored under pressure in a series of caverns within a thick salt sequence approximately 2,000 metres below ground level. These caverns would be created by dissolving sale with seawater, circulated under controlled conditions. It is anticipated that 18 caverns would be created, with six caverns built in three phases.

The next stage in the process is to drill a well to confirm the thickness and properties of the salt sequence.

Returning to the companys conventional oil and gas activities, the Waddock Cross-1 well, onshore southern England was drilled over a year ago. This encountered a 24-metre column in the Jurassic Bridport Sandstone. The well pumped 31 barrels per day in August 2004. There were various delays. A 12 sq km seismic survey has been acquired and planning permission has been obtained for two horizontal wells: Waddock Cross-3, in which Egdon has a 45 per cent interest will be an appraisal of the Bridport Sandstone oil discovery; well number five in the programme will be Waddock Cross-4, which will test production in December. Equipment is constrained to 500 bpd of which the company expects 150 bpd to be oil.

Between now and then, Egdon is going to be involved in Westerdale-1 on PEDL068 in which it has a 20 per cent interest, as well number 3 in its programme. This is an exploration well looking at a gas prospect in the North Moors National Park. The well is a 35 metres updip, 3.7 metres step out from Ralph Cross-1 well drilled in 1966 which flowed at 6 million cubic feet of gas per day from fractured limestone (Brotherton). The potential net to Egdon if it assumes a 5 per cent option to increase its equity to 25 per cent is put at 8.8 bcf.

Well number 2 in the programme will be Kirleatham-4 on PEDL068 where Egdon again has a 20 per cent interest of which 10 per cent is carried. This is a gas prospect to the east of the Wilton petrochemical works. Drilling will be updip of 1940s wells, which found gas.

Well number 4 is the Portland-1 well, which is subject to planning permission being granted and is expected to start towards the end of 2005.

Thereafter stretching into 2006 a further 6 wells are planned on various licences including Grenade in southern France and Avington, which is near Winchester in southern England. Grenade is a heavy oil prospect and Egdon has farmed out a 22 per cent interest in the field to Masefield Energy Holdings, a company with proprietary technology in heavy oil operations. This leaves Egdon with a 33.4 per cent stake.

Avington on PEDL070, in which Egdon has a 20 per cent stake, is a Greater Oolite play. Avington-2 was drilled in August 2003. The well flowed at 700 barrels per day. There was thought to be 100 million barrels of oil in place, of which 10 million barrels could be recoverable. Further appraisal has been much delayed because of the protracted sale of Pentex the operator. This has now been resolved. The new operator, Star Energy, hopes to drill the Avington-3 appraisal well early in 2006.

As things stand Egdon has no debt and a net cash position of 2.95 million. It has 1 million barrels of proved and probable reserves, 6.8 million boe of estimated contingent reserves and 104 million boe of prospective resources (unrisked). The company is looking forward to first production and thus cash flow from Waddock Cross later this year.

Then there is the Portland Gas Project to look forward to. It will take three years at least to come onstream if all goes well but as the UK runs out of gas, storage is expected to be big business.

The companys reasoning is as follows. The UK is the worlds third largest gas consumer and with North Sea output in decline, is expected to become a net importer in 2006. Despite this, at present the countrys gas storage facilities are equivalent to just 4 per cent of annual demand, a figure which compares with 25 per cent in France and 21 per cent in Germany.

Gas consumption is significantly higher in winter than in summer and storage facilities can provide swing capacity to help meet peak demand. In the last week of last April gas for this winter was trading at a price approximately 26p/therm higher than then current prices. It is by exploiting such differentials that income can be generated.

Before Egdon upgraded its storage possibility to 35 bcf, broker Seymour Pierce made some estimates on the project. It assumed the first cavities are operational by 2009 and the facility is fully commissioned by 2011. It also assumed it is filled and depleted twice a year and uses inflation rates varying between 2 and 10 per cent. On that basis the broker said if a gas price differential of just 10p a therm could be achieved, such a development could be worth 43 million, or more than twice the companys market capitalisation.

Andy - thanks, a splendid article. A lot of good stuff in there but I guess 2 things jump out from an initial reading. Firstly, EDR has no debt which is unusual and extremely healthy. And secondly the final paragraph gives a tantalising glimpse of EDR's long-term potential. If you can afford to squirrel these away they could make a small fortune in the not-too-distant future.

Another cracking day for EDR. Saw the headline on the front of the Mail today that screamed, "Gas prices to triple over the winter." Not good for those of us who use gas to heat our homes but potentially lucrative for those that deal in gas and its supply going forward.

queen1,

That was the Express, and they always sensationalise their headlines.

I think that a 300% rise in the price of gas would create a crisis, and result in many deaths, and politically would not be acceptable.

It would cause severe political problems IMO.

Mail/Express, whatever. My point is not that I belive the headline and expect the 300% rise, more that the environment at present, and the way it will inevitably head over time, seems to be conducive to success for EDR.

Storming ahead this morning, NICE.

cheers GF.

I wonder if the market is waking up to the potential of EDR...Let's hope so!

What a really rather splendid day! 1 reached. Where to now I wonder?

Not sure why the retreat today. The clamour for gas, resources etc seems to get louder by the day, plus there was a small positive note in Shares today.

More selling than buying maybe.
Cheers

How very insightful porky. Pure genius.

This seems broadly positive:

Egdon Resources Plc ('Egdon' or 'the Company') is pleased to provide an update
on drilling and testing operations on its UK operated licences.

The BDF28 drilling rig has completed drilling and logging operations at
Kirkleatham-4 on licence PEDL068. The Kirkleatham-4 well reached a TD of 936m
within rocks of Carboniferous age on the 7th January 2006. During drilling gas
shows were encountered within the target Permian age Zechstein carbonates.
Logging operations have now been completed and confirmed the presence of a c.
19m gas column within the Cadeby Formation. The top of the Cadeby Formation was
penetrated at 804.3m where a drilling break and high gas readings were observed.
Evaluation of wireline log data indicates high gas saturations and good
porosity development within the gas bearing interval. The Kirkleatham-4 well
will be completed with 7' casing and the BDF28 rig released. Testing operations
will be undertaken using a work-over rig. Further activity at Kirkleatham will
be assessed once test results have been evaluated.

On completion of operations at Kirkleatham-4 the drilling rig will mobilise to
the Westerdale-1 well site in North Yorkshire where drilling operations are
expected to commence during the week of 16th January 2006. Westerdale-1 is
designed to test an accumulation 50.5 m up-dip and 3.7 km to the north of the
Ralph Cross-1 gas discovery made by Home Oil Limited in 1966. Ralph Cross-1
tested gas at flow rates of up to 6 million cubic feet of gas per day from a
20.5 m gas column in fractured Zechstein carbonates. Additional reservoir
objectives are present in the Westerdale-1 well both within the Zechstein and in
the underlying Carboniferous sequences. Westerdale-1 will be directionally
drilled to a total depth of around 1250 m and will take around 21 days to drill.

On completion of operations at Westerdale-1 the rig will move to Dorset to drill
the Portland-1 well which is designed to test the thickness and suitability of a
salt sequence for the creation of caverns for gas storage. Site construction
has commenced at the Portland-1 well site.

The Company can also report that at Waddock Cross-3, testing operations are
ongoing in the horizontal section drilled in the Cycle 3 of the Bridport
Sandstone. Initial results indicate pump constrained flow rates of 270 to 400
barrels of fluid per day with an average 12% oil cut. This equates to 32 to 48
barrels of oil per day. The produced oil has not experienced the emulsion
problems encountered with the Waddock Cross-2 well test. Downhole pressure
gauges will be recovered during the next week and the data analysed to determine
options for the future testing and development of the Waddock Cross
accumulation.

13.01.2006

Egdon Finds Gas In Yorkshire And Oil In Dorset But Further Testing Is Required
Egdon Resources, which has seen its share price increase four-fold on Londons Alternative Investment Market over the past year, has announced initial results from its multi-well onshore UK drilling campaign.

Testing operations on the Waddock Cross-3 horizontal well in the Wessex Basin of southern England have pumped between 32 and 48 barrels of per day of oil from the Cycle 3 sandstones. The overall flow rate was between 270 and 400 barrels per day (there was a 12 per cent oil water cut). The well was designed to probe an elevated part of the Waddock Cross oil accumulation and is a follow-up to the 2004 Waddock Cross-2 well, which flowed around 30 bpd and confirmed a 20 million barrel oil discovery.

The oil flow numbers from Waddock Cross-3 appear to be a disappointment: reservoir modelling by RPS Troy Ikoda had predicted that a horizontal well through the Cycle 2 and 3 sandstones could produce at an average rate of in excess of 200 barrels per day. However, the produced oil has not experienced the emulsion problems encountered at Waddock Cross-2 and the rate was constrained by the pumping equipment. Testing operations are still ongoing and further analysis work is planned to determine the economic options for a possible development at Waddock Cross.

There was also news from Egdons exploration campaign in the gas-prone Cleveland Basin of North Yorkshire. The Kirkleatham prospect was tested in the 1940s by two wells which at the time produced sub-commercial gas-flows. The onshore specialist, which has also branched out into gas storage, reckons modern drilling and completion techniques deployed updip will tap into a workable gas reservoir.

Early results would appear to confirm that prediction. Drilling and logging operations on the Kirkleatham-4 well have been completed, having encountered gas shows in the Zechstein carbonates. The well has confirmed the presence of a 19 metre gas column in the Cadeby formation, where wireline logs indicated high gas saturations and good porosity. The well was not tested, however: this procedure, which will be key to determining the commercial future of the deposit, will be undertaken using a workover rig.

The drilling rig is now set to move to the Westerdale-1 well site, also in North Yorkshire. This well is due to spud next week and will test an accumulation 3.7 km north of the Ralph Cross-1 gas discovery which flowed at rates of up to 6 million cubic feet per day fo gas from a 20.5 metre gas column in the fractured Zechstein carbonates. Egdon plans to test this reservoir in Westerdale-1 as well as targeting the underlying Carboniferous formation. This should take about 21 days to drill.

After this operation, the rig - the much traveled BDF 28 - will move down south to drill the Portland-1 well. This hole is not prospecting for oil and gas but checking on the suitability of the salt sequence here for a below-ground gas storage business. Egdon entered the gas storage market in April and hopes to have this, its first operation, up and running by 2008.

This is a timely move and given recent events in Russia - which has flexed its muscle as a regional energy power, causing jitters across the European gas supply chain - could prove very astute in the longer term. Imported gas is expected to meet half of UK demand by 2010 and storage capacity is expected to play a key role in the countrys ability to ensure supply security and swing capability to meet winter peaks in energy demand. At present, the UKs gas storage capacity is currently about 4 per cent of annual consumption, compared with 25 per cent in France and 21 per cent in Germany.

With supplies increasingly coming from further afield, gas storage facilities look set to become a vital resource in the gas supply marketplace, said joint MD Andrew Hindle at the launch of Egdons new business venture. Egdon has used its extensive knowledge of the geology of the UK onshore to identify the potential site at Portland to participate in this emerging growth business within the UK oil and gas industry. It is currently anticipated that the initial working volume will be between 10 and 20 billion cubic feet and the first cavity on the site should become operational in 2008.

Oilbarrel.

Bud day at the office for EDR today. Anyone have any ideas why?

queen1,

No, I'm surprised by the drop.

Me too Andy and a little concerned. To be fair the sp has been fantastic over the last 12 months and all along the way there has been one step back followed by 2 forwards so I'm hoping this is the step back and two steps forward are on their way!

A stunning break-out day for the EDR sp today. Perhaps this is the first of the two steps forward!

Further test results published today look good. And we should have a clearer understanding of the potential of Portland in May. Exciting times.

new to the thread, after buying into EDR, wish I got in earlier though!!!

A very warm welcome to you vistauk. I hope you enjoy the EDR ride as much as I have so far.

On another point I see that Seymour Pierce put out a buy recommendation on EDR today.

Positive buying news although the SP seems to be taking another little breather.

The Company was notified on 24 March 2006 that as at 22 March 2006, as a result
of acquisitions of ordinary shares in Egdon Resources ('Ordinary Shares'),
Credit Suisse Securities (Europe) Limited held an interest in 2,263,333 Ordinary
Shares representing approximately 3.96 per cent. of the issued Ordinary Share
capital of the Company.

Debt free and funds almost double what they were last year. Portland however will still be the key:

Egdon Resources reported slightly narrower first half losses, but said its exploration business is looking forward to an exciting second half drilling.

The onshore UK oil and gas exploration and production business reported first half to Jan pretax loss of 238,000 against a year earlier loss of 296,000.

Following December's 4.8m institutional placing, the company is debt-free, with net funds at end-January of 6.3m, against 3.7m a year ago.

Chairman Philip Stephens said Egdon 'is experiencing operational success in all areas of its business, and we are particularly pleased with the confirmation of gas in two of our wells. The Portland Gas Storage Project is progressing, with a well currently being drilled to confirm the viability of creating salt caverns for storing gas.'

What on earth has spooked the market in EDR today??

Why has this gem drop today...anybody any ideas?

Something seems to have spooked the market in EDR although there have been pullbacks recently which have been quickly reversed, followed by the achievement of new highs. Let's hope this is a similar scenario.

Queen1,

I visited the Waddock Cross site at the weekend.

The site has been developed since I was last there, and the Egdon sign is at the gate.

I could see where the rig had been, but sady it has already left, so not much to see, but we enjoyed a nice drive in the countryside anyway.

Thanks Andy, glad you enjoyed a bit of fresh air! Any views on the recent (including today) sp dip?

queen1,

No, not really, although I did wonder why the price raced up in the first place.

Portland is not a done deal by any means, IMO, and if the site proves suitable, they will have to raise considerable finance, around 100 million, I believe, so perhaps it just got a bit ahead of itself?

Thanks Andy...100million is quite an amount to raise...so that is why EDR dipped to 123p today.

hlyeo98,

To be honest, that information was already in the public domain, and had been for some time, so that certainly wouldn't have caused today's fall.

Chart suggests some support around this price, but today's fall was with volume, so with the other indicators looking gloomy, it will be interesting to see what tomorrow brings.

Andy - Does someone know something we don't about Portland as the SP weakness these last few days is becoming worrying?

Freefall now. What the hell's going on???

FWIW regarding gas storage projects, I know that Star Energy had sent in a planning application for a similar facility at their Welton site, but that this appeared likely to be refused by Lincolnshire County Council's planning committee, in spite of recommendation by the Planning Officers. Star plans to appeal if necessary.

It may be worth having a dig around at Dorset County Council to find out if there have been any objections to Egdon's proposal. If my Dad still had a council seat I'd tap him, but alas his political days are now ancient history.

Thanks soul traders. With the issues surrounding the UK's dwindling gas reserves, need to import etc I am hoping that planning authority will be granted but I guess Star is a warning shot on that one.

FWIW (again) planning committees can be struck with incapacitatingly large doses of Nimbyism just when it's least needed. Also you never know until you take a closer look just who is lodging objections and, in spite of being possibly many sandwiches short of a picnic, how much clout they have.

All of this could have something to do with EDR's SP going through the wars, or of course it could just be lack of newsflow and good old uncertainty playing its part.

FYI I'm not "in" EDR, just an interested observer.

Thanks again soul traders for that balanced insight. If only all interested observers were as objective (ref:YOO).

Had to chuckle, Queen1. I am reminded of the rhetorical question, "Why look for the living amongst the dead?"

LOL!!!

A VERY positive RNS this morning!


Egdon Resources PLC
28 June 2006

28 June 2006

For immediate release


EGDON RESOURCES PLC

Portland Gas Storage Project Update


Egdon Resources Plc (AIM : EDR), the onshore UK focused energy company, today
provides an update on its gas storage project on the Isle of Portland in Dorset.


Portland Gas Limited ('Portland Gas'), a wholly owned subsidiary of Egdon
Resources Plc, is pleased to report that drilling operations for the Portland-1
borehole have been completed and the BDF Rig 28 is expected to be released
within the next 24 hours.


A total drilled depth of 2929 metres was reached in the Triassic Sherwood
Sandstone on 21st June 2006.


The Portland-1 borehole on the Isle of Portland, Dorset was drilled to confirm
that a halite sequence with a low insoluble content (called 'S7' by Portland
Gas), within a Triassic salt sequence ('Saliferous Beds') of the Wessex Basin,
was suitable for the creation of caverns to store natural gas. Initial technical
analyses of the data acquired from the borehole, by Portland Gas consultant
DEEP. Underground Engineering GmbH ('DEEP') of Germany, indicates that
individual caverns of approximately 250,000 cubic metres could be created within
the S7 sequence at the Isle of Portland location. This is the same volume used
in the pre-feasibility work for the project prior to the drilling of the
Portland-1 borehole.


The Saliferous Beds were encountered with a thickness of 470 metres (41 metres
thicker than forecast). The top of the target S7 interval was penetrated at a
depth of 2365 metres and was found to have a thickness of 135 metres (43 metres
thinner than forecast).


DEEP will coordinate the completion of further laboratory work on core samples
over the S7 sequence and computer simulation of the proposed cavern leaching
programme. Final confirmation of project feasibility is expected in August 2006.


Portland Gas has also undertaken feasibility work, with DEEP and RPS Energy at
Winfrith, Dorset, looking at the use of brine, rather than gas as a cushion for
the gas storage operations. In the case of gas cushion operations a quantity of
gas must always remain in the caverns to maintain a minimum operating pressure.
If brine were used the pressure would always be maintained close to the maximum
operating pressure. Gas withdrawn from the caverns would be compensated by
replacement with an equivalent volume of brine at the subsurface pressure.
Conversely, when gas is injected into the caverns the brine would be withdrawn.
Such operations would offer significant benefits to the Portland project as it
would remove the need to purchase gas to maintain the internal pressure.
Portland Gas proposes to source the brine required for these operations from the
Triassic Sherwood Sandstone aquifer in Dorset. While the Portland-1 borehole
confirmed that the properties of the Sherwood Sandstone aquifer are not suitable
on the Isle of Portland, feasibility studies have identified an area close to
the proposed route of the gas pipeline, which would link the storage facilities
on the Isle of Portland to the National Transmission System, where the Sherwood
could be used. At this location boreholes could be directionally drilled to
withdraw or inject saline formation water. A brine pipeline would be constructed
alongside the gas pipeline to the Isle of Portland to support the gas storage
operations.


Commenting on the project's progress, Andrew Hindle, Joint Managing Director of
Egdon, said:


'We are delighted that the borehole encountered a sequence of salt which appears
suitable to create caverns for the storage of natural gas. We anticipate that
the results of the remaining technical work will enable us during August 2006 to
confirm the feasibility of a gas storage project on the Isle of Portland, and at
the same time outline the proposed storage volumes, injection and withdrawal
rates and project development timetable from start-up. The presence in Dorset of
an aquifer with very saline waters has provided us with the opportunity of
replacing very costly gas with brine for the cushion within the caverns. The
Environmental Impact Assessment work is now at an advanced stage for the project
and planning and pipeline construction authorisation applications are being
prepared for submission in Q4 2006.'


For further information please contact:

Egdon resources Plc


Andrew Hindle, Joint Managing Director 01256 702 292
Mark Abbott, Joint Managing Director

Buchanan Communications

Eric Burns 01943 883 990
Ben Willey 020 7466 5000


Company Background


Egdon is an established, UK-based energy company primarily focused on the
hydrocarbon-producing basins of the onshore UK. Egdon also has exploration
interests in the offshore UK and France. Egdon's shares are traded on the AIM
market.


The Company is developing two major business areas:


An oil and gas exploration and production business which has a portfolio of
twenty exploration licences containing identified oil and gas prospects ranging
from discoveries under appraisal through to higher risk but higher reward '
wild-cat' exploration prospects.


A gas storage business initially focused on the prospective development of a
major salt cavern gas storage facility beneath the Isle of Portland, Dorset.


In accordance with AIM rules -guidance for mining, oil and gas companies, the
information contained in this announcement has been reviewed and signed off by
the Joint Managing Director of Egdon Resources Dr Andrew Hindle, a Chartered
Geologist with over 22 years experience.






This information is provided by RNS
The company news service from the London Stock Exchange

At last - great news for those that kept the faith!!!!!

Still heading north. I thought they may retrace slightly after yesterday's rise so good to see momentum maintained.

Still looking good, and outlook could not be better.

Agreed porky. A new high reached, where to next week I wonder?

Now this is looking good......up 17% at present today. More to come?

Credit Suisse topping up at high levels:

The Company was notified today that as a result of acquisitions of ordinary
shares in Egdon Resources ('Ordinary Shares'), Credit Suisse Securities (Europe)
Limited now has an interest in 3,513,333 Ordinary Shares, representing approximately 6.15 per cent. of the issued Ordinary Share capital of the Company.

Is this the momentum building prior to a positive Portland announcement??

Could be - but this has now doubled in approx two months. What would be fair value?

With the issues the UK is facing in the not-too-distant future regarding gas supplies, dependency on Russia etc it's anyone's guess....

The excellent news we have been waiting for - Portland is feasible!

Egdon Resources Plc, the onshore UK focused energy company, today provides an update on its gas storage project on the Isle of Portland in Dorset.

Portland Gas Limited ('Portland Gas'), a wholly owned subsidiary of Egdon Resources Plc, is pleased to report that it has received a report from DEEP.
Underground Engineering GmbH of Germany confirming the technical feasibility of
the proposed gas storage facility in Dorset. Subject to obtaining planning approval for the project, Portland Gas will commence construction as soon as possible.

Following analysis of the data acquired from the Portland-1 well, which completed drilling operations on 21 June 2006, Portland Gas can now confirm that it proposes to develop a facility comprising 14 caverns within the Triassic Saliferous Beds capable of storing 1000 million cubic metres (35 billion cubic feet) of natural gas.

The facility is being designed to enable the injection or withdrawal of gas at a
rate of 20 million cubic metres per day (0.7 billion cubic feet per day). At these rates the entire storage volume could be filled or emptied in 50 days.

Portland Gas is now finalising the environmental statement for the project and
the planning and pipeline construction authorisation applications are being prepared for submission in the fourth quarter of 2006. Assuming planning approval for the project is forthcoming in the first half of 2007, it is anticipated that an initial storage capacity would be available to make gas deliveries to the national transmission system in the winter of 2010, with full capacity being available during 2013.

The Directors of Egdon Resources Plc are also pleased to announce that N M
Rothschild & Sons have been appointed as financial advisors with specific
responsibilities for Portland Gas.

Commenting on the project's progress, Andrew Hindle, Joint Managing Director of Egdon, said: 'We are delighted to be able to confirm the feasibility of a gas storage project on the Isle of Portland. The proposed facility would make a significant contribution to the storage needs and security of gas supply for the United Kingdom, with the capability when fully developed to provide up to 5% of the national gas demand on a winter's day. The appointment of Rothschilds to assist with the financing of the project and securing storage agreements with customers is an important element of our plans to ensure that construction of the facility can commence immediately upon a grant of planning approval.'

Whoosh! That's quite some rise on the closing bell today. More news coming?

I can't believe there have been no posts on here for 6 months! Then again there's not been much news. Some good movement today however....

EDR going from strength to strength - Egdon Resources said its Portland Gas NI Ltd unit has won an exploration licence from The Crown Estate to evaluate the suitability of a Permian salt sequence deep below Larne Lough in Northern Ireland to create caverns to store natural gas.

The company said Portland Gas is planning to carry out a seismic survey in October to confirm the extent of the salt sequence seen in the old borehole. Data will be acquired in the northern half of Larne Lough using shallow-draft boats and on roads adjacent to the Lough by vibroseis trucks, it said.

Egdon Resources said it has started oil exports from its 100% owned Keddington oil field in Lincolnshire which is currently yielding 48 barrels of oil per day - a figure the company plans to ramp up. The oil is being pumped from the Keddington-1z well following workover operations and it is intended to increase the pump rate of this well and restore production from the Keddington-2y well. All required regulatory and environmental approvals for continuing production from the site have been received. The company bought the PEDL005 (Remainder) Keddington licence from Roc Oil last year.

At the 20 pct-owned Weald Basin licence PEDL070, operator Star Energy told Egdon that drilling operations were completed at the Avington-3z horizontal well and production testing is expected to start in August.

In an operational update, Egdon added that good progress is being made for the drilling of the Burton Agnes-1 exploration well where the company is operator and 25 pct-owner of North Yorkshire licence PEDL071.

Egdon added that contracts for the site lease, site construction and drilling rig are in the final stages of negotiation and long lead items have been procured. Site construction is expected to start during August 2007.

The company also received permit approval to drill the Grenade-3 well at the St Laurent Licence area in France.

It's always good to see directors spending their own hard-earned:

Oil and gas exploration company Egdon Resources PLC said non-executive finance director Ken Ratcliff bought 14,000 shares in the company at 230 pence each, lifting his stake to 53,000 shares or about 0.08 pct.

Egdon Resources Plc - preliminary results for the year ended 31 July 2007.

Operational Highlights

Gas Storage

Portland Gas Storage Project parameters confirmed as 1,000 million cubic metres capacity facility with injection/ withdrawal rates of 20 million cubic metres per day

Planning applications and pipeline construction authorisation application submitted for Portland Gas Storage Project in March 2007

Front end engineering design completed and invitation for tender package issued during September for the pipeline and facilities construction

New project announced for potential salt cavern gas storage project at Larne Lough, County Antrim, Northern Ireland

Oil & Gas Exploration

Acquisition of PEDL005 (Remainder) containing the Keddington Oil Field which was restored to production during June 2007

Production testing ongoing at Avington-3z well

Acquisition of four licences from Stag Energy Limited

Farm-outs concluded for wells in licences PEDL071 and PEDL141

Drilling activity planned at Burton Agnes, Grenade and Tees during late 2007

Currently holds 24 licences in UK and France

Financial Highlights

Loss for period of 537,968 (2006: 519,250)

Loss per share of 0.85p (2006: 0.94p)

Net funds as at 31st July 2007 7.9 million (31st July 2006: 1.89 million)

Completion of an institutional placing during October 2006 to raise 11.52 million net of expenses

Completion of an institutional placing during September 2007 to raise 4.8 million net of expenses

Commenting on the results, Philip Stephens, Chairman of Egdon, said:

'2006/7 has been another year of progress in our two activities of oil and gas exploration and production and gas storage development. As previously reported we are on track to achieve the creation of two separate companies by way of a demerger so that shareholders will own shares in each distinct business, both of which will be admitted to AIM.'

CHAIRMAN'S STATEMENT

The results for the year to 31st July 2007 show a consolidated loss before taxation of 537,968 (2006: 519,250). No dividend is being proposed. The company had net cash balances at the year end of 7.9 million (2006: 1.89 million). In October 2006, we completed a placing with institutions to raise 12 million before costs. A second institutional placing in September 2007 realised 5 million before costs. As a result we have been able to continue to fund the development of our gas storage projects and also our drilling and development programme in our oil and gas activity.

Gas Storage

The key achievement in our gas storage activity was the submission in March 2007 of a number of planning applications to Dorset County Council and Department of Business, Enterprise and Regulatory Reform (formerly the DTI) covering the creation of salt storage caverns on Portland, Dorset and the constructing of a pipeline connecting the storage facility with the National Gas Grid. The United Kingdom is moving from being self sufficient from its reserves in the North Sea to being a net importer as these reserves decline. The creation of this gas storage facility is therefore a significant national project. Dorset County Council is co-ordinating consideration of the applications on behalf of the numerous councils and agencies involved. The time required for consideration has taken longer than originally expected to accommodate requests for additional supporting information to the applications, in respect of new archaeological fieldwork, geotechnical and other surveys and the adoption of additional environmental mitigation measures. These works and designs have now been completed and we expect a decision to be made during the first quarter of 2008. The front-end engineering design work was completed in September 2007 and invitation to tender packages have been sent out to pre-qualified companies for construction of the facilities and pipelines. On this basis, contracts could be granted on award of planning permission to enable construction to commence immediately, and first gas stored in the facility on time during 2011.

We were pleased to announce in July a new gas storage project in Northern Ireland. We have been granted an exploration licence from the Crown Estate to evaluate a storage project at Larne Lough, County Antrim. Northern Ireland at present has no gas storage facilities and if, following the seismic programme to be undertaken by the end of 2007, the suitability of the site is confirmed, then planning will be sought to develop this important strategic facility. The funding of the evaluation of this project will be largely met from the proceeds of the placing of shares in September this year, which realised 5 million before expenses.

Clearly it has been an encouraging year for Portland Gas and we look forward to being able to announce the grant of planning permission so that construction of the storage caverns can commence on Portland.

Oil and Gas Exploration and Production

There have been a number of additions to our oil and gas exploration and production business through acquisition. Earlier in the year, as mentioned in my interim statement, we acquired the Keddington Oil Field in the East Midlands for 250,000 in cash. Production has been restarted in one of the two wells and is currently producing around 40-45 barrels of oil per day. We plan to optimise production from the field during the coming year with restoration of production from a second well.

In October we completed the acquisition of four licences in the East Midlands from Stag Energy Limited for a total consideration of 125,000 of which 100,000 was payable in cash and the balance by the issue of Egdon shares. This acquisition adds significant acreage to one of our core areas and has the potential to add material reserves. We will initially focus our efforts on the potential identified in the Eakring-Dukes Wood oil field.

In August we announced that production testing of our well at Avington, which is operated by Star Energy Plc, produced at 470 barrels per day. We have a 20 per cent interest in this well and these early results are very encouraging. Further testing is currently taking place to establish the full potential for oil recovery and we will announce the results in due course.

At our Kirkleatham gas discovery our plan is to sell gas to a local industrial user. Negotiations are proceeding and we hope to have the field on production during 2008.

Outlook

As previously mentioned we expect the planning decision for our Portland Gas Storage project in the first quarter of 2008. Assuming a positive outcome, we will be in a position to proceed with financing arrangements for the construction. Together with our advisors we are already considering various options in order to maximise value to our shareholders.

We have achieved our previously stated aim in our oil and gas division to move into production in 2007 and first revenues are now being received. Further development plans should see increasing production and revenues in 2008. We can also look forward to wells on the Burton Agnes, Grenade and Tees prospects during the remainder of 2007.

The demerger is now planned to become effective in January 2008 subject to approval at an Extraordinary General Meeting and a separate circular will be sent shortly to shareholders giving full details.

All in all, 2007 has been another exciting year and, with every expectation that our important goals will be achieved soon, we thank shareholders for their continuing support.

Egdon Resources said its wholly-owned subsidiary Portland Gas NI Ltd has commenced its planned 3D seismic acquisition programme in Larne Lough, Northern Ireland.

The company said the survey covering about 10 square kilometres is being undertaken by the geophysical contractor, IMC Geophysics, adding that data is being acquired in the northern half of Larne Lough in shallow-draft boats and on roads adjacent to the Lough by vibroseis trucks.

'Portland Gas hopes that the data will confirm the extent of a salt sequence seen in a 1980's borehole drilled close to the docks in Larne,' managing director of Portland Gas Andrew Hindle said in a statement.

A nice move up of almost 7% today to take it up out of its recent trading range. Demerger plans announced last week which look good. Perhaps the market is waking up to EDR again.

Egdon Resources said it will demerge its gas storage business into New Portland PLC and oil and gas business into New Egdon PLC. The company said it will list both the new companies on AIM as separate entities on Jan 16.

It said New Portland, which will be re-named 'Portland Gas PLC' following admission, will issue about 67.8 mln shares and will have a market capitalisation of about 140 mln stg. New Egdon, to be renamed Egdon Resources PLC following admission to AIM, will issue about 67.8 mln shares and have a market capitalisation of about 30 mln stg.

Egdon Resources said it has started drilling operations at the Grenade-3 well, part of the St Laurent Permit in France, in which it holds a 33.42 pct interest.

The Grenade-3 well, a step-out to the Grenade-1 discovery well and an appraisal of the Grenade heavy oil accumulation, will take about 30 days to reach the target depth, Egdon said.

Contingent upon the results of this pilot hole, Egdon said a horizontal sidetrack will be drilled and completed to undertake a long-term production test.

A very positive start to the week, up almost 24% so far today :-)

queen1 - you seem to have gone remarkably quiet.
This stock is almost parallel with the zero-line - was this as a result of the Portland Gas demerger?
+PG also appears to have been downward.

Anyone?

I sold hangon. Over the last three years I made a huge return on these especially Portland Gas when it flew to 400p but the time was right to leave.

Good luck to all current holders.

Cracking news:

Egdon Resources says that the Keddington -3z well in Lincolshire has been producing oil since 7 June 2010 and production during the first seven days was 1855 barrels at an average rate of 265 barrels per day. The well is also producing significant quantities of gas with the daily rate being over 500,000 cubic feet of gas per day.

The currently observed production represents over a ten fold increase in daily oil volume and a five fold increase in gas volume from the Keddington-2z donor well.

The Company adds that the flow from the well is currently being restricted to manage the gas flows and pressures in the surface facilities. Given the significant levels of gas being produced from this well, Egdon is now looking to resurrect plans for on-site electricity generation with a view to developing an additional revenue stream and utilising the produced gas.

Mark Abbott, Managing Director of Egdon says: "We are encouraged by the early performance of the Keddington-3z well. The current level of oil production exceeds our pre-drill estimate and will provide a welcome a boost to production and revenues. The high level of gas production presents us with an opportunity to generate further cashflow from the field in due course and as a priority we will be reviewing our options for electricity generation over the coming weeks. "

DJ Egdon Resources PLC Planning approval

TIDMEDR

RNS Number : 7187A

Egdon Resources PLC

04 February 2011

For Immediate Release 4 February 2011

EGDON RESOURCES PLC

("Egdon" or "the Company")

Planning approval for Nooks Farm drilling operations

Egdon Resources plc (AIM:EDR) is pleased to announce that it has been advised by Seven Star Natural Gas Ltd ("Seven Star"), the farm-in partner on Staffordshire licence PEDL141, that planning permission was granted by Staffordshire County Council for the re-entry and testing of the Nooks Farm-1A well at a planning committee meeting held on 3 February 2011.

The Nooks Farm accumulation was discovered by Shell in 1982, with the Nooks Farm-1A well encountering gas bearing sandstones of Carboniferous age at a depth of 430m relative to sea level. The well achieved a maximum flow rate of 1.12 million cubic feet of gas per day on test. Estimates of the volumes of gas in place at Nooks Farm have been independently assessed as being in the range of 0.88 to 3.83 billion cubic feet of gas. It is proposed to re-enter the Nooks Farm-1A well and produce gas for on-site electricity generation with export via an underground cable to the National Grid.

Under the terms of a Farm-in Agreement the drilling will be operated by Seven Star, a wholly owned subsidiary of UK Onshore Gas Limited.

Egdon holds a 46% interest in the licence and will be carried through the planned drilling programme.

Egdon will provide an update on the timing of operations in due course.

The licence interests in PEDL141 are:

Egdon Resources Plc 46%

Seven Star Natural Gas Limited 50%

Altwood Petroleum Limited 4%

Commenting on the news Egdon's Managing Director Mark Abbott said:

"We are pleased to receive consent for our planned re-entry of the Nooks Farm-1A gas discovery well and now look forward to Seven Star progressing plans for drilling and testing operations which we expect to be completed by September of this year. The proposal for low impact operations has enabled us to gain planning consent where previous operators have failed. Given a successful outcome to the operations we believe that Nooks Farm could make a contribution to revenues as early as 2012."

For further information please contact:

Egdon Resources plc

Mark Abbott 01256 702292

Buchanan Communications

Richard Darby, James Strong, Gabriella Clinkard 020 7466 5000

Nominated Adviser and Broker - Seymour Pierce

Jonathan Wright, Jeremy Porter (Corporate Finance) 020 7107 8000

Richard Redmayne (Corporate Broking)

Notes to Editors:

Egdon Resources plc

Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK and Europe.

Egdon currently holds interests in thirty one licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator in both the UK and France.

Egdon was formed in 1997 and listed on AIM in December 2004.

www.egdon-resources.com

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist with over 25 years' experience.

This information is provided by RNS

Cantor Fitzgerald Buy 15.63 17.00 17.00 Reiterates

Top riser on the FTSE at the moment...!

Egdon Resources and its partners - GP Energy Limited, Island Gas Limited and eCORP Oil & Gas UK - has signed a farm-out agreement with Total E&P UK for licences PEDL139 and PEDL140 located in the Gainsborough Trough geological basin in Lincolnshire. Egdon will hold a 14.5% interest in the licences which cover an area of 240 square kilometres and are immediately adjacent to licences PEDL209 and PL161/162 where Egdon has further interests.

Total will earn a 40% interest in the licences through the payment of $1.6m in back costs and the funding of a fully carried work programme of up to $46.5m. Total has the option to exit after an initial period of this work programme corresponding to a minimum commitment of $19.5m. The programme will include the acquisition of 3D seismic, the drilling and testing of a vertical exploration well and associated well pad construction, and, conditional on the success of the testing of the exploration well, the drilling and flow testing of a second appraisal horizontal well.

Up another 30%.

Looks like I picked the wrong one (IGAS)....well perhaps not the wrong one, but in rising percentage terms...

Just sold some @21.5p - too much too soon?

perhaps switch into Igas ?....this is going to spike and settle,... here..check out AGL...

That's an interesting chart RF - looks very tradeable.

Perhaps you could put that on the AGL thread...thanks...

Blimey!

EOG now starting to soar

Got in on 15/1 at 24.3 only to see it drop-quickly put stop on at 20 but thankfully it never got there and is now trading at 35p/s up 40% after just 4 trading days!!!

Crikey !...it's got a chart looking like that skycraper in Dubai !...looks like I picked the wrong gas share...

Not sure why it's gone so berzerk but it's having knock on affect to other Oilies so can't complain.
Awful volatility today , I think it's the end for now, seem to be switching to EOG for it's turn, who have a tie up with EDR

Completion of Farm-out Agreement with Total E&P UK Limited - PEDL139 & PEDL140

Egdon Resources plc (AIM:EDR) is pleased to announce the completion of the Farm-out Agreement with Total E&P UK Limited in respect of UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140.

As a consequence of the various agreements between the parties, Egdon will receive $600,000 (ca. £365,000) in cash following completion.

The interests in PEDL139/140 are:

Total E&P UK Limited : 40.0%
GP Energy Limited (a subsidiary of Dart Energy Europe Limited) : 17.5%
Egdon Resources U.K. Limited : 14.5%
Island Gas Limited : 14.5%
eCORP Oil & Gas UK Limited : 13.5%

StockMarketWire.com
Egdon Resources has started drilling operations at the Laughton-1 exploration well in Lincolnshire. The Laughton-1 well was spudded 12 February 2016.

The well will target a structural trap at a depth of over 1,500 metres defined on reprocessed two-dimensional seismic data.

The Laughton Prospect has multiple conventional Carboniferous sandstone reservoir targets with the primary objective being the Silkstone Rock, an approximately 15 metre thick sandstone interval which is productive in the analogous Corringham Oil Field located five kilometres to the south-east. Two other potential reservoirs, the Kilburn Sandstone and the Wingfield Flags, will also be targeted by the well. The consolidated mean Prospective Resource volume for the three targets, is estimated by Egdon to be 1.3 million barrels of oil.

Egdon says the operations at the Laughton wellsite will not, either now or in the future, involve the process of High Volume Hydraulic Fracturing for shale gas.

In January 2016 Egdon announced that Union Jack will earn a 10% interest in the Laughton-1 exploration well and two other conventional prospects in PEDL209, in return for paying 16.67% of the cost of the well.

On completion of this transaction, the licence interests in the Laughton Prospect and the two other conventional prospects in PEDL209 will be:

Egdon Resources UK Limited : 50%

Blackland Park Exploration Limited : 28%

Stelinmatvic Industries Limited : 12% Union Jack Oil plc : 10%

Egdon managing director Mark Abbott said: "We are pleased to report the start of drilling at Laughton-1 and we look forward to updating shareholders with the preliminary results from the well in around one month's time. Onshore oil and gas projects remain commercially attractive even during a period of reduced commodity prices. Egdon's conventional exploration drilling programme remains a key part of our strategy, with successful exploration capable of delivering near-term additions to our production and revenue stream."