Licence Approval

Egdon Resources PLC
03 June 2005


For immediate release                                             3rd June 2005

                              EGDON RESOURCES PLC

                     APPROVAL TO BECOME OPERATOR OF PEDL068
                            LICENCE IN CLEVELAND BASIN

Egdon Resources Plc ('Egdon' or 'the Company') has received partner and
Department of Trade and Industry approval to take over as operator of the
PEDL068 licence in the Cleveland Basin from Sterling Resources (UK) Ltd.

Two exploration wells are planned for the fourth quarter of 2005 on the licence,
Westerdale-1 and Kirkleatham-4. Egdon has taken over as operator in order to
include the wells within a possible six well onshore UK programme that the
Company will be managing during 2005/6. The other wells include two wells to
appraise the Waddock Cross oil discovery in the PL090 licence within the Wessex
Basin, a confirmation well to establish the presence of a suitable salt sequence
on the Isle of Portland to create cavities to store gas and a further
exploratory well in licence PL090 to test a Sherwood Sandstone prospect
(Winfrith-1).

The timing and order of the programme is subject to obtaining the necessary
planning and landowner consents. Egdon hope to commence the drilling programme
in the autumn of 2005 and have appointed Mahon Consultants Limited as drilling
engineers to the project.

Commenting on the agreement, Egdon's Joint Managing Director, Andrew Hindle,
said, 'The DTI approval provides the green light, subject to necessary consents,
for the proposed PEDL068 wells to form part of a multi-well programme, thus
leading to significant cost savings to Egdon on casing, equipment and services.
This is in line with the Company's plans, stated in the interim results
announcement, dated 25 April, to embark on an accelerated phase of exploration
drilling and to move the discoveries at Waddock Cross and Avington into
profitable production'.

For further information please contact:

Egdon Resources Plc                                                01256 702292
Mark Abbott, Joint Managing Director
Andrew Hindle, Joint Managing Director

Buchanan Communications                                           020 7466 5000
Eric Burns
Ben Willey

Notes to the Editors:

The wells within the outlined Egdon operated drilling programme are located
within the PL090 licence (Waddock Cross-3, Waddock Cross-4, Winfrith-1) in the
Wessex Basin where the Company holds a 45% working interest and the PL068
licence (Westerdale-1, Kirkleatham-4) in the Cleveland Basin where the Company
holds a 20% working interest. The Portland gas storage confirmation well will be
drilled from a site leased by wholly owned subsidiary, Portland Gas Limited.

Company Background

Egdon is an established, independent UK-based oil and gas exploration company
primarily focused on the hydrocarbon-producing basins of the onshore UK. Egdon
also has exploration interests in the offshore UK and France.

Egdon was formed in 1997 by Dr Andrew Hindle and Mark Abbott. In December 2004,
Egdon's shares commenced trading on AIM, having been previously traded on Ofex
since July 2000. The Company has acquired a diverse portfolio of nineteen
exploration licences containing a significant number of identified oil and gas
prospects. The licences cover a broad risk spread, ranging from discoveries
under appraisal through to higher risk but higher potential reward prospects.




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