Operations Update

Egdon Resources PLC
15 March 2006


For immediate release                                             15 March 2006


                              EGDON RESOURCES PLC


          Operations Update: Kirkleatham-4 Confirmed as Gas Discovery


Egdon Resources Plc ('Egdon' or 'the Company'), the UK based independent oil and
gas exploration and production company, is pleased to provide an update on its
UK operations and announce that testing operations have confirmed the presence
of gas at the Kirkleatham-4 well.


At Kirkleatham-4 in Cleveland Basin licence PEDL068, testing of 6m perforated
interval at the top of the Cadeby Formation commenced on 6 March with an initial
flow rate of 2.8 million standard cubic feet of gas per day ('mmscfgd'). The
rate was increased in steps during the five day test to a final rate of 5
mmscfgd at a flowing well head pressure of approximately 1000 pounds per square
inch gauge pressure ('psig') through a 18/64' choke. During the test, flaring
was restricted to the period 07.00 to 19.00 hrs. The well was shut-in for a long
term build-up on 10 March. Initial analysis indicates that the gas quality is
good with less than 3 mol% inert content and 93 mol% Methane.


The well has been completed for potential future production and will be
suspended once the down-hole pressure gauges are recovered from the well later
this week. The future programme for Kirkleatham will be decided following
recovery of the down-hole gauges and full analysis of the test results. Planning
is progressing for potential seismic acquisition over the Kirkleatham
accumulation.


Test equipment and personnel are currently being moved from Kirkleatham-4 to the
Westerdale-1 well-site, also in PEDL068, to test indications of gas encountered
in two intervals during recent drilling operations.

Drilling operations at the Portland-1 well commenced on 6 March. The BDF28 rig
was drilling ahead at a depth of 810 metres at 15.00 hrs on 14 March. Portland-1
is being operated by Egdon on behalf of its wholly owned subsidiary, Portland
Gas Limited. Data from the well will enable the determination of the thickness
and suitability of the salt interval to create caverns at the proposed Portland
Gas Storage Project. Portland-1 has a prognosed total depth of around 2500 m.
Drilling, coring and testing operations are expected to take around 50 days.


In Weald Basin licence PEDL070, operated by Star Energy Plc, the Avington-3
appraisal well has reached TD and the well has been logged and a liner set. A
well test programme will now be undertaken using the operator's work-over rig.


For further information please contact:


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


Buchanan Communications
Eric Burns                                                         01943 883 990
Ben Willey                                                         020 7466 5000


Notes to the Editors


In the PEDL068 licence in the Cleveland Basin the Company holds a 20% working
interest and holds an option to increase its interest to 25%. The Portland-1 gas
storage confirmation well is being drilled by Egdon from a site leased by its
wholly owned subsidiary, Portland Gas Limited. The Company holds a 20% working
interest in the PEDL070 licence in the Weald Basin


Company Background


Egdon is an established, UK-based energy 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. The Company's
shares are traded on AIM under code EDR.


The Company is developing two major 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 prospective development of a
major salt cavern gas storage facility beneath the Isle of Portland, Dorset.






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