Acquisition Of Licences

Egdon Resources PLC
03 September 2007



3rd September 2007                                         For Immediate Release

                              EGDON RESOURCES PLC

                           ('EGDON' or 'The Company')

          Acquisition of onshore UK licences from Stag Energy Limited

Egdon Resources Plc (EDR:AIM), the onshore UK focused energy company, is pleased
to announce that it has reached agreement with Stag Energy Limited ('STAG') to
acquire its entire interest in UK Onshore Petroleum Exploration and Development
Licences PEDL094, PEDL118, PEDL130 and PEDL132 all of which are located in the
East Midlands.

The consideration for the acquisition is £100,000 in cash and £25,000 in Egdon
Ordinary shares. In addition Egdon has granted a Gross Overidding Royalty of 5%
of future production from the licences.

Licence PEDL 118 (Egdon 100%) contains the Eakring-Dukes Wood abandoned oil
field which produced from a number of stacked shallow sandstone reservoirs of
Carboniferous age from 1940 until 1966. The field was discovered in 1939 and
extensively drilled and produced during the second world war, where production
peaked at 1600 barrels of oil per day in 1941. A water flood was initiated in
1947 and total production at abandonment in 1966 was 6.5 million barrels of oil
(mmbo) out of mapped 25.6 mmbo in place. However, extensive studies by BP during
the 1980's indicated that the water flood resulted in some reservoirs being
prematurely 'killed' and unswept. As such there is potential to rejuvenate the
field to take advantage of increased oil price, improved technology and the
recognition of undrilled and undrained parts of the field.

Planning approval is in place for the drilling of the Eakring North prospect
which will test an undrained culmination at the north of the Eakring-Dukes Wood
structure. Options will be investigated for the restoration of production from
some of the existing abandoned wells on the field. Reservoir modelling will be
undertaken to determine the potential to access undrained areas of the field and
for enhnaced oil recovery from the un-produced Wingfield Flags reservoir.

The PEDL094 licence (Egdon 100%) is located between producing oil fields at
Gainsborough, Corringham and Glentworth and contains identified prospective
structures.

Licence PEDL130 is located to the north and west of the Eakring-Dukes Wood oil
field and contains a continuation of the Eakring structural trend. Egdon has
100% of the conventional oil and gas rights over the licence with Alkane Energy
Plc having the rights to the mine gas and coal bed methane.

The PEDL132 licence (Egdon 100%) is located to the east of Eakring-Dukes Wood
and to the south and east of the Egmanton oil field. Structural leads are
recognised to the east and south of Egmanton on existing 2D sesimic data.

The licence transfers are subject to approval by the Department for Business,
Enterprise and Regulatory Reform (formerly the DTI).

Commenting on the acquisition, Mark Abbott, Joint Managing Director of Egdon
said:

'We are pleased to have reached agreement with STAG for the acquisition of these
four licences which significantly expands our acreage holdings in one of our
core areas and has the potential of adding material reserves and resources to
the Egdon business. Our initial focus will be on the Eakring-Dukes Wood
structure where we have identified potential un-drilled areas, by-passed oil pay
and enhanced oil recovery opportunities. We will also be undertaking further
technical evaluation of a number of prospective areas currently identified
within the other licences with a view to future drilling.'

For further information please contact:

Egdon Resources Plc

Mark Abbott, Joint Managing Director 01256 702 292
Andrew Hindle, Joint Managing Director 0208 332 1200

Buchanan Communications

Ben Willey                                                         020 7466 5000
Nicholas Melson                                                    020 7466 5000

Seymour Pierce
Jonathan Wright                                                    020 7107 8000

Notes to Editors:

Company Background

Egdon is an established, UK-based energy company primarily focused on 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 distinctive businesses:

   •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 development of a major
    salt cavern gas storage facility on Portland, Dorset.

Egdon plans to demerge the two businesses on or soon after 21 December 2007.

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 Mark Abbott, a Geoscientist with
over 21 years experience.




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