Contract Signed

Egdon Resources PLC
27 December 2006

27 December 2006

For immediate release



                              EGDON RESOURCES PLC



            Project Management Contract signed for Portland Project



Egdon Resources Plc (AIM : EDR), the onshore UK focused energy company, today
announces that Portland Gas Limited ('Portland Gas'), its wholly owned
subsidiary, has entered into a project management contract with Penspen Limited
('Penspen').



Effective from 1st January 2007, Penspen's responsibilities will include
management of Front End Engineering Design ('FEED') leading to tendering
contractors for the Engineering, Procurement and Construction ('EPC') of the
proposed gas storage project on the Isle of Portland, Dorset.



Portland Gas is currently undertaking an extended period of consultation with
the County Council, District and Parish Councils and other stakeholders in the
project prior to finalising the Environmental Statement ('ES'). Once the ES is
completed it will accompany planning submissions for the project elements to
Dorset County Council and Department of Trade and Industry (the latter for the
pipelines) in the first quarter of 2007.



While the ES is being finalised, Penspen will manage the design and site
investigation work to enable the EPC contracts to be tendered and awarded so
that construction can commence in the fourth quarter of 2007, subject to
obtaining planning permission for the project.



Commenting on the appointment of Penspen, Andrew Hindle, Managing Director of
Portland Gas, said:



'With their headquarters in Richmond, Surrey, Penspen operates from 15 offices
around the world and has been a key member of the team since 2005 providing the
planning design for the 37 kilometre pipeline to connect the Isle of Portland to
the National Grid.



The management team will also include representatives from other organisations
who have been instrumental in developing the project design for the planning
application, such as DEEP. Underground Engineering GmbH of Germany. The Project
manager will be Paul Trundle MSc, CEng, MIMechE, MIGasE who has 25 years
experience, and together with his team, has extensive experience managing EPC
contracts for the development of significant infrastructure projects, both in
the UK and Internationally.'





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



Watershed PR (Dorset)



Sara Hudston
                    01308 485693



Seymour Pierce



Jonathan Wright
                    020 7107 8000





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 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
development of a major salt cavern gas storage facility beneath the Isle of
Portland, Dorset. Portland Gas Limited, a wholly owned subsidiary of Egdon
Resources Plc, proposes to develop a facility comprising 14 caverns within the
Triassic Saliferous Beds capable of storing 1000 million cubic metres (35
billion cubic feet) of natural gas. The facility is being designed to enable the
injection or withdrawal of gas at a rate of 20 million cubic metres per day (0.7
billion cubic feet per day). At these rates the entire storage volume could be
filled or emptied in 50 days and have the capability when fully developed to
provide up to 5% of the national gas demand on a winter's day. Egdon announced
in October 2006 that it intended to demerge the gas storage business from the
oil and gas exploration business during 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 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