Portland Operations Update

Egdon Resources PLC
20 April 2006


20 April 2006                                             For immediate release


                              EGDON RESOURCES PLC


                          Portland-1 Operations Update


Egdon Resources Plc (AIM : EDR) the onshore UK focused energy company today
provides an update on its gas storage project on the Isle of Portland in Dorset.


Portland Gas Limited ('the Company'), the wholly owned subsidiary of Egdon
Resources Plc, is drilling the Portland-1 borehole on the Isle of Portland,
Dorset to confirm that a halite sequence (called 'S7' by the Company), within a
Triassic salt sequence ('Saliferous Beds') of the Wessex Basin, is suitable for
the creation of caverns to store natural gas.


The top of the Saliferous Beds was encountered at a depth of 2139 metres (130
metres deep to prognosis). Following the setting of a 7 inch steel liner in the
hole, coring of the sequence, using a wireline retrievable core barrel,
commenced on 14 April 2006 at a depth of 2149 metres.


At 07:00a.m. today core number 15 was recovered from a depth of 2190 metres
within the interbedded salt and claystone sequence overlying the S7 interval of
interest. The S7 sequence in nearby boreholes, drilled during the 1980's and
1990's for hydrocarbon exploration in the underlying Sherwood Sandstone, is a
halite dominated interval. The S7 is expected to be approximately 180 metres
thick at Portland-1.


The rate of progress of the coring operations has been slower than anticipated
and it is now estimated that the coring will take a further 30 days to complete.
Assuming the S7 interval is encountered as anticipated, sections of the core
will then be taken to laboratories in Germany to enable the Company, to confirm
through a series tests, the suitability of the Saliferous Beds on the Isle of
Portland for the development of a gas storage facility.


Work on the Environmental Impact Assessment for the project is progressing well
and any proposed development of the Portland site would be subject to planning
and consents approvals.


For further information please contact:


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


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



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's shares are traded on the AIM
market.


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.


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.



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