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