Demerger Effective

Egdon Resources PLC
16 January 2008



                              Egdon Resources Plc

                               Demerger effective

Egdon Resources Plc, the independent on-shore UK focussed energy company
('Egdon') announces that the Court has approved the scheme of arrangement and
reduction of capital and accordingly the demerger of Egdon Resources Plc into
New Egdon and Portland Gas plc is now complete. Accordingly admission to trading
of the ordinary shares in Egdon Resources Plc will be cancelled at 8.00am
tomorrow and trading is expected to commence in New Egdon (which has been
renamed Egdon Resources plc) and Portland Gas plc at 8.00am tomorrow.

Pursuant to the demerger the holders of ordinary shares in Egdon Resources Plc
at 6.00pm on Monday 14 January 2008 will receive, for each ordinary share held
in Egdon Resources Plc, one ordinary share in New Egdon (which has been renamed
Egdon Resources plc) and one ordinary share in Portland Gas plc.

Enquiries:

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
Sarah Jacobs                                                020 7107 8000




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