Preliminary Results

Egdon Resources PLC
24 October 2005


For immediate release                                            24 October 2005



                              Egdon Resources Plc

                           ('Egdon' or 'the Company')

                              Preliminary Results


Egdon Resources Plc (AIM : EDR), the UK focused energy Company is pleased to
announce its Preliminary Results, for the year ended 31 July 2005.


Operational Highlights


     •    Confirmation of oil discovery at Waddock Cross
     •    Multi-well drilling programme to commence in November 2005
     •    Portland Gas Storage Project progressing well - now targeted to store
          up to 35 Bcf
     •    Avington drilling anticipated to recommence in near future
     •    Transfer from OFEX to AIM completed in December 2004


Financial Highlights


     •    Placing in December 2004 - raising £4.5 million
     •    Loss for the period £420,617 (2004: £246,350)
     •    Loss per share 0.92p (2004: 0.72p)
     •    Net Cash position of £2.95 million (2004: £552,405)


Commenting on the results, Philip Stephens Chairman of Egdon, said:


'The Company has made good progress since joining AIM in December 2004, and we
are looking forward to an active phase of exploration and appraisal drilling
which should add material value to the Company.



'The potential of our gas storage project at Portland will also drive
shareholder value.'



For further information please contact:


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

Buchanan Communications
Ben Willey                                                         020 7466 5000
Alastair Watson                                                    01943 883 990



Notes to the Editors



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. In December 2004,
Egdon's shares commenced trading on AIM, having been previously traded on Ofex
since July 2000. 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; and a gas storage business initially focused on the
development of a salt cavern gas storage facility on the Isle of Portland,
Dorset.



                              CHAIRMAN'S STATEMENT



'In this my first year as Chairman I am pleased to report that the period
covered by these Results was one of significant progress for your Company.



The Company recorded a consolidated loss of £420,617 for the year ended 31 July
2005 (2004: £246,350). No dividend is being recommended for the period.



The Company is currently debt free with cash of £2.95 million at 31 July 2005
(2004: £552,405), enabling it to pursue its growth strategy through an active
programme of evaluation and drilling of its assets.



During the year the Company has been able to announce Waddock Cross as a
significant oil discovery. We have further developed our licence portfolio with
success in the twelfth landward and twenty third seaward licensing rounds and
have undertaken an extensive programme of seismic acquisition. We are now about
to embark on our first multi-well drilling programme.



The Company has also added a major new area of business through its entry into
the UK gas storage market via the Portland Gas Storage Project, a business
venture that your Board considers has the potential to add significant
shareholder value. Gas would be stored under pressure in a series of caverns
within a thick salt sequence approximately 2000m below ground level. These
caverns would be created by dissolving salt with sea water circulated under
controlled conditions. This project is managed through a newly incorporated
wholly owned subsidiary, Portland Gas Limited.



Initial feasibility work has been completed on the potential size and operating
parameters for the project. It is anticipated that ultimately 18 caverns could
be constructed from the site, with 6 caverns built in each of three phases. The
initial phase will have a working storage volume of 330 million cubic metres ('
mcm') (or 11.6 billion cubic feet ('bcf')), increasing on completion of stages
two and three to 660mcm (23.2 bcf) and 990mcm (34.8 bcf) respectively. The
Portland Gas Storage Project will be designed as a high deliverability facility
with planned gas export capabilities to the national gas grid increasing from 18
to 54mcm/day through the three phases.



The next stage in the development of the project is to drill a well to confirm
the thickness and properties of the salt sequence and subject to receiving
planning consent, this will be drilled as part of the Company's multi-well
programme early in 2006. Conditional upon satisfactory results from this well
the Company will work to submit a full planning application for the project
during mid-2006.



Returning to the Company's conventional oil and gas activities, where
significant progress has been made during the year. The Company now has a
portfolio of oil and gas assets comprising of interests in twenty licences
containing over fifty identified oil and gas prospects. A key priority for the
Company continues to be the commercialisation of the Waddock Cross and Avington
oil discoveries and realisation of cash-flow from oil production.



The Company has been able to confirm Waddock Cross as a significant oil
discovery for the onshore UK following testing and an independent review during
2004, and has initiated an active appraisal programme. A twelve square kilometre
3D seismic survey was acquired in spring 2005 which has improved the structural
understanding of the field leading to almost a doubling of the mapped in place
oil. Planning has been granted for two horizontal appraisal wells, the first of
which is due to commence drilling in early November 2005. The Waddock Cross-3
well will target an elevated part of the structure identified by the 3D seismic
survey. We anticipate test production from Waddock Cross will commence during
December 2005.



Following the Waddock Cross well two exploration wells will be drilled on the
Kirkleatham and Westerdale prospects in North Yorkshire. Previous wells down-dip
on both prospects have encountered gas. Following these wells the rig will
return to Dorset to drill at Portland and potentially a further appraisal well
at Waddock Cross.



This 'back-to-back' drilling programme has resulted in significant overall cost
savings on materials, equipment and services.



The continued delays in the drilling of the Avington-3 well caused by the
protracted sale of the operator have been frustrating, but with the completion
of the acquisition of Pentex Management Limited by Star Energy Plc, we can now
look forward to further appraisal of the Avington discovery during the early
part of 2006.



Progress has also been made on the Company's international project, the Grenade
heavy oil accumulation in SW France, where engineering studies, have confirmed
the potential for a commercial development. An appraisal programme is planned
starting with the acquisition of seismic data in November 2005 and leading to
possible drilling in 2006.



Also of note is the award of a 50% interest in block 15/7 in the recently
announced twenty third seaward round of licensing which contains the Funnel
heavy oil accumulation. The operator has estimated most likely recoverable oil
of 16 million barrels.



Elsewhere in the Company's UK portfolio wells are planned during 2006 to test
the Tees Prospect, in offshore block 42/27 where the Company has a 10% interest
and the Holmwood Prospect in Surrey (Egdon interest 38.4%) which is subject to
receipt of planning consent. Drilling on the Fraisthorpe Prospect, where seismic
was acquired during 2005, may also be undertaken during late 2006. In Dorset,
multiple prospects have been identified within the Sherwood Sandstone which is
productive at the giant Wytch Farm oilfield located ten kilometres to the east
of the Company's licences. We intend to seek planning permission during 2006 to
drill one of these prospects.



The Company has an enviable exploration success record with oil discoveries
being made in two out of the three wells in which it has participated to date.
The challenge now is to continue this record of exploration success as we embark
upon an accelerated phase of exploration drilling and to move the discoveries at
Waddock Cross and Avington into profitable production at the earliest
opportunity.



In addition to our conventional oil and gas exploration and production portfolio
our entry into the gas storage market represents a unique opportunity for the
Company to create significant shareholder value.



We look forward to an exciting future and we thank you for your continued
support'



Philip Stephens
Chairman
21st October 2005


                              EGDON RESOURCES PLC
                      CONSOLIDATED PROFIT AND LOSS ACCOUNT
                        FOR THE YEAR ENDED 31 JULY 2005

                                                                         2005                    2004
                                                    Note                    £                       £

Turnover                                                               11,133                  33,457

Cost of sales                                                         (9,674)                (37,406)

Gross profit/(loss)                                                     1,459                 (3,949)

Administration expenses                                             (533,663)               (252,222)
Other operating income                                                 80,877                  36,193

Operating loss                                                      (451,327)               (219,978)

Interest receivable                                                    73,210                   8,628
Interest payable                                                     (42,500)                (35,000)

Loss on ordinary activities before taxation                         (420,617)               (246,350)

Taxation                                                                    -                       -

Retained loss for the year                                         £(420,617)              £(246,350)

Basic and diluted loss per share                     1                (0.92)p                 (0.72)p


The accompanying notes are an integral part of this consolidated profit and loss
account.


There were no recognised gains or losses other than the loss for the year.


The consolidated profit and loss account has been prepared on the basis that all
operations are continuing.


                              EGDON RESOURCES PLC
                           CONSOLIDATED BALANCE SHEET
                               AS AT 31 JULY 2005

                                                                         2005                    2004
                                                    Note                    £                       £

Fixed assets
Intangible assets                                                   2,598,711               1,775,490
Tangible assets                                                         2,977                   4,160

                                                                    2,601,688               1,779,650
Current assets
Debtors                                                               232,859                  70,657
Investments                                                         2,044,580                       -
Cash at bank and in hand                                              903,965                 552,405

                                                                    3,181,404                 623,062
Creditors: amounts falling due within
one year including convertible debt                                 (105,598)               (386,906)

Net current assets                                                  3,075,806                 236,156

Total assets less current liabilities                               5,677,494               2,015,806

Provision for liabilities and charges                                (93,500)                (28,800)

NET ASSETS                                                         £5,583,994              £1,987,006

Capital and reserves
Called up equity share capital                                        515,950                 365,950
Share premium account                                2              3,867,605               2,542,589
Profit and loss account                              2              1,200,439               (921,533)

EQUITY SHAREHOLDERS' FUNDS                                         £5,583,994              £1,987,006



                              EGDON RESOURCES PLC
                        CONSOLIDATED CASH FLOW STATEMENT
                        FOR THE YEAR ENDED 31 JULY 2005

                                                                          2005                      2004
                                           Notes              £              £            £            £

Net cash inflow from operating               3
activities                                                           (477,125)                 (217,323)

Returns on investment and
servicing of finance
Bank and investment interest receipts                    73,210                       8,628
Bank interest paid                                     (42,500)                    (35,000)
                                                                        30,710                  (26,372)
Capital expenditure and financial
investment
Payments to acquire tangible fixed assets               (1,829)                       (768)
Payments to acquire intangible fixed assets           (823,221)                   (613,522)
Receipts from sale of intangible fixed assets                 -                     106,000
                                                                     (825,050)                 (508,290)
Net cash flow before use of liquid
resources and financing                                            (1,271,465)                 (751,985)

Management of liquid resources
(Increase)/decrease in short term deposits                         (2,044,580)                   250,584

Financing
Proceeds from issue of Ordinary shares                4,500,000                     675,000
Costs associated with share issue                     (482,395)                    (32,500)
Repayment of Debentures                               (350,000)                           -
                                                                     3,667,605                   642,500

Increase in cash                             4                        £351,560                  £141,099

Reconciliation of net cashflow to
movement in net funds
Increase in cash in the year                            351,560                     141,099
Cash to repurchase debenture                            350,000                           -
Cash used to increase/(decrease)
liquid resources                                      2,044,580                   (250,584)

Change in net funds                                                  2,746,140                 (109,485)
Net funds at 1 August 2004                                             202,405                   311,890

Net funds at  31 July 2005                                          £2,948,545                  £202,405



NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2005


1.       EARNINGS PER SHARE


                                                                     2005               2004
                                                                        £                  £

Net loss for the financial year                                 (420,617)          (246,350)

Basic weighted average ordinary shares in
Issue during the year                                          45,718,262         34,315,615

                                                                    Pence              Pence
Basic loss per 1p ordinary share                                   (0.92)             (0.72)



The basic earnings per share has been calculated on the loss on ordinary
activities after taxation of £420,617 divided by the weighted average number of
ordinary shares in issue of 45,718,262 during the period. At the year end
options were in place over 2,000,000 shares. No diluted loss per share is
presented as the effect of the exercise of the share options would be to
decrease the loss per share.



2.       RESERVES


                                                Share              Profit
                                              premium            and loss
                                              account             account              Total
                                                    £                   £                  £
Group

At 1 August 2004                            2,542,589           (921,533)          1,621,056
On shares issued in the year                4,350,000                   -          4,350,000
Share issue costs                           (482,395)                   -          (482,395)
Capital redemption                        (2,542,589)           2,542,589                  -
Loss for the year                                   -           (420,617)          (420,617)

At 31 July 2005                            £3,867,605          £1,200,439         £5,068,044



On 15 November 2004 shareholders passed a resolution approving the cancellation
of the Company's share premium account which stood at £2,542,589. The
cancellation became effective on 8 December 2004 following registration of an
order of the High Court of Justice of England and Wales with the Registrar of
Companies in England and Wales.



3.   RECONCILIATION OF NET INCOME RESOURCES TO NET CASH INFLOW FROM
OPERATING ACTIVITIES


                                                                     2005               2004
                                                                        £                  £


Operating loss for the year                                     (451,327)          (219,978)

Depreciation                                                        3,012              4,048
(Increase)/decrease in debtors                                  (162,202)             24,296
Increase/(decrease) in creditors                                   68,692           (19,856)
Increase in provisions                                             64,700            (5,833)

                                                               £(477,125)         £(217,323)



4.     ANALYSIS OF CHANGES IN NET FUNDS


                                                As at                                  As at
                                             1 August                                31 July
                                                 2004           Cash flow               2005

Cash at bank and in hand                      552,405             351,560            903,965
Debt due within one year                    (350,000)             350,000                  -
Current asset investments                           -           2,044,580          2,044,580

                                             £202,405          £2,746,140         £2,948,545



5.       ACCOUNTING POLICIES



The accounts for the year ended 31 July 2005 have been prepared and audited on
the basis of accounting policies set out in previous years.






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