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

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?