Re Agreement

Egdon Resources PLC
15 August 2006




15th August 2006
For immediate release


                              EGDON RESOURCES PLC

                     Farm-out Agreement PEDL141 Nooks Farm


Egdon Resources Plc (AIM : EDR), the onshore UK focused energy company, is
pleased to announce that it has reached agreement with Seven Star Natural Gas
Limited ('Seven Star') for the farm-out of a 50% interest in Staffordshire
Petroleum Exploration and Production Licence ('PEDL') 141 which contains the
Nooks Farm gas discovery.


Under the terms of the agreement Seven Star will fully fund the planning for and
drilling of an appraisal/development well on the Nooks Farm accumulation within
two years of this agreement.  Subject to certain conditions being met, Seven
Star will operate the drilling activity.


Following the farm-in the licence interests will be as follows:


Egdon Resources Plc                          46%

Seven Star Natural Gas Limited               50%

Altwood Petroleum Limited                     4%


The Nooks Farm accumulation was discovered by Shell in 1982, with the Nooks
Farm-1a well encountering gas bearing sandstones of Carboniferous age at a depth
of 430m relative to sea level. The well achieved a maximum flow rate of 1.12
million cubic feet of gas per day on test.  Estimates of the volumes of gas in
place at Nooks Farm have been independently assessed as being in the range of
0.88 to 3.83 billion cubic feet of gas.  Development options for Nooks Farm are
likely to involve on-site electricity generation.


Seven Star, a wholly owned subsidiary of UK Onshore Gas Limited, also operates
Production Licence ('PL') 213 which includes the Calow gas field near
Chesterfield in Derbyshire which was developed by BP in the 1960's.



Assignment of the licence interest to Seven Star is subject to the approval of
the Secretary of State for Trade & Industry.



Commenting on the agreement, Mark Abbott, Joint Managing Director of Egdon,
said:



'We are happy to have concluded agreement with Seven Star to progress activity
on the Nooks Farm gas discovery.  This project was not at the top of Egdon's
priority list so with the involvement of Seven Star we can now look forward to
the earlier potential development of Nooks Farm.'


For further information please contact:


Egdon resources Plc


Andrew Hindle, Joint Managing Director               01256 702 292
                                             
Mark Abbott, Joint Managing Director



Buchanan Communications



Kelly-Ann French                                     01943 883 990

Ben Willey                                           020 7466 5000



Egdon 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 Mark Abbott, a geophysicist with
over 21 years experience.



Seven Star Company Background



Seven Star Natural Gas Limited is a wholly owned subsidiary of UK Onshore Gas
Limited, a private Company, which in addition to PL213 operates two contiguous
PEDL's totalling 430 square kilometres in South Wales through further
subsidiaries, Coastal Oil and Gas Limited and UK Methane Limited.



                      This information is provided by RNS
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