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

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.