Re Farm-out Agreement

Egdon Resources PLC
30 May 2006


30 May 2006
For immediate release


                              EGDON RESOURCES PLC
                           ('Egdon' or 'the Company')

              Farm-Out Agreement - PEDL071 - Fraisthorpe Prospect


Egdon Resources Plc, the onshore UK focused energy company, is pleased to
announce that Egdon and Joint Venture partner Sterling Resources (UK) Ltd 
('Sterling') have reached agreement to farm-out their combined 90% interest
(Egdon 50%, Sterling 40%) in North Yorkshire licence PEDL071, which contains the
Fraisthorpe Gas Prospect, to Granby Enterprises Limited ('Granby') and two UK
subsidiaries of Gas Plus Italiana S.p.A, Gas Plus E & P UK Limited and Gas Plus
O & G UK Limited (together 'Gas Plus').   Both Granby and Gas Plus are new
entrants to the onshore UK.

Under the farm out arrangements, Gas Plus and Granby will fund Egdon and
Sterling's full share of the drilling and testing costs for the proposed
Fraisthorpe-1 exploration well, up to a limit of £1.8 million, to earn a 35% and
10% interest in PEDL071 respectively.  Following the farm-out, Egdon will retain
a 25% interest and operatorship of PEDL071.  Under the terms of the farm-in,
Granby will also provide Egdon with some technical assistance for the Licence on
behalf of itself and the joint venture.

The Fraisthorpe-1 well will target a Permian Leman Sandstone prospect at a depth
of around 1800 metres located some 7 kilometres to the south of the Caythorpe
gas field which produces from the same formation.  A 2D seismic survey was
acquired over the prospect in May 2005.  The interpretation of these data has
indicated that the prospect has potential for up to 56 billion cubic feet 
('Bcf') of gas in place.

A planning application is currently being prepared and, subject to planning
approval and operational constraints, the Fraisthorpe-1 well is anticipated to
be drilled by early 2007.

Assignment of the licence interests to Gas Plus and Granby are subject to the
approval of the Secretary of State for Trade & Industry.



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 Editors

Participating Interests

Following completion of the farmout arrangements and the assignment of interests
in the licence, the participating interests will be:


Company                                                       Participating Interest %
Egdon Resources Plc                                           25
Sterling Resources (UK) Ltd                                   20
Gas Plus E & P Limited                                        17.5
Gas Plus O & G Limited                                        17.5
Granby Enterprises Limited                                    10
Sterling Energy Plc                                           10


Gas Plus O & G UK Limited and Gas Plus E & P UK Limited are subsidiaries of Gas
Plus Italiana S.p.A. an Italian independent natural gas Company within a
vertically integrated Group active in the exploration, production, supply, sales
and distribution gas business, and is the third largest Italian operator in
terms of domestic gas production produced from 39 concessions, for 26 of which
it is operator.

Granby Enterprises Limited is a wholly owned subsidiary of Granby Oil and Gas
plc which was established in 2002 and listed on AIM in 2005 under the code GOIL.
Granby is an oil and gas business focused on exploration in carefully selected
areas in the North Sea and elsewhere, and also on securing production and
development projects.  The current asset base of Granby comprises interests in
13 UK offshore licences and one licence offshore Philippines.

Egdon Resources Plc 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.


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