Completion of Acquisition

Egdon Resources PLC
17 October 2007



17th October 2007                                          For Immediate Release

                              EGDON RESOURCES PLC

                           ('EGDON' or 'The Company')

Completion of acquisition of onshore UK licences from Stag Energy Limited, Issue
                     of new shares and Total Voting Rights

Egdon Resources Plc (EDR:AIM), the onshore UK focused energy company, is pleased
to announce that, further to the announcement made on 3 September 2007, it has
completed the acquisition from Stag Energy Limited of their 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 was £100,000 in cash and the issue of
10,494 Egdon Ordinary shares. In addition, Egdon has granted to Stag a Gross
Overiding Royalty of 5% of future production from the licences.

Application has been made for the new shares to be admitted to AIM and admission
is expected to take place on 23 October 2007. Following admission, the Company
will have 67,801,840 ordinary shares in issue and an equivalent number of voting
rights.

Licence PEDL118 (Egdon 100%) contains the Eakring-Dukes Wood abandoned oil field
which produced from 1940 until 1966. Egdon believe there is potential to
rejuvenate the field to take advantage of increased oil prices, 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 high at the north of the Eakring-Dukes Wood
structure. Egdon estimate that the oil in place within the Eakring North
prospect is in the range 1.0 to 2.1 million barrels. Options will be
investigated for the restoration of production from some of the existing
abandoned wells on the field. In addition, reservoir modelling will be
undertaken to determine the potential to access undrained areas of the field and
for enhanced oil recovery from the un-produced Wingfield Flags reservoir which
Egdon estimate has potential oil in place in the range 9 to 12 million barrels.

Licences PEDL094, PEDL130 and PEDL132 contain a number of identified leads and
prospects and will be evaluated for further drilling opportunities during 2008.

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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