First Day of Dealings on AIM

Egdon Resources PLC
21 December 2004

   NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR THE
                              REPUBLIC OF IRELAND



21 December 2004
                              EGDON RESOURCES PLC

                         First Day of Dealings on AIM


Egdon Resources Plc ('Egdon' or 'the Company'), the independent UK focused oil
and gas exploration company, is pleased to announce that trading of its shares
commences on AIM today.



The Company has raised £4.5 million (gross of expenses) for the Company and
£500,000 for existing shareholders.



Seymour Pierce Limited ('Seymour Pierce') is the Nominated Adviser and Broker to
Egdon.



Egdon has interests in nineteen exploration licences containing a significant
number of identified oil and gas prospects and is primarily focused on the
hydrocarbon-producing basins of the on-shore UK.



The Company has found hydrocarbons in two of the three wells it has participated
in to date:



-                      Avington-2 in 2003

-                      Waddock Cross-2 in 2004



Both of these oil discoveries are currently under appraisal with production from
Avington and Waddock Cross expected to commence during 2005.



The Company intends to become a significant and profitable oil and gas producer
through an active and focussed exploration and appraisal drilling programme,
asset and/or company acquisitions, and pro-active management of the Company's
oil and gas assets. In particular, the Company will look to grow largely through
exploration success, continue to focus on the on-shore UK and will look to
identify and exploit new technologies and opportunities to enhance asset value.



Placing Statistics


Placing Price                                                                30p
Number of Ordinary Shares in issue prior to the Placing               36,594,974
Number of new Ordinary Shares being Placed                            15,000,000
Number of existing Ordinary Shares being Placed                        1,666,666
Number of Ordinary Shares in issue immediately following Admission    51,594,974
Placing Shares as a percentage of the enlarged issued share capital        32.3%
Market capitalisation at the Placing price                               £15.48m
Gross proceeds of the Placing receivable by the Company                    £4.5m
Estimated net proceeds of the Placing receivable by the Company           £3.99m



Reasons for the Placing and Use of Proceeds



The net proceeds of the Placing receivable by the Company, which are expected to
be £3.99 million, will provide significant further equity capital for the
Company, strengthening the Company's capital base, and will put the Company in a
strong position to progress its business strategy described above and take
advantage of future acquisition and development opportunities as and when they
arise. In particular, the funds raised from the Placing will be used for seismic
acquisition and appraisal drilling at Avington and Waddock Cross. The data to be
acquired will reduce the uncertainties on the size of the accumulations prior to
field development. Funds from the Placing will also be used to drill up to four
new exploration wells and acquire additional 3D seismic data to reduce the risk
on further prospects within the portfolio.



For further information please contact:


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

Seymour Pierce Limited                                       020 7107 8000
Jonathan Wright
Jeremy Porter

Richard Redmayne

Buchanan Communications                                      020 7466 5000
Eric Burns
Ben Willey



Notes to the Editors:



Egdon is an established, independent UK-based oil and gas exploration company
primarily focused on the hydrocarbon-producing basins of the onshore UK. Egdon
also has exploration interests in the offshore UK and France. The Company
applies advanced level exploration technology to the overlooked potential of
such areas. Egdon was formed in 1997 by Dr Andrew Hindle and Mark Abbott and its
Ordinary Shares have been traded on the OFEX market since July 2000. The Company
has acquired a diverse portfolio of nineteen exploration licences containing a
significant number of identified oil and gas prospects. The licences cover a
broad risk spread, ranging from discoveries under appraisal through to higher
risk but higher potential reward prospects.



Company Background



Egdon has focused geographically on the onshore UK as the Directors believe that
the area is underexplored, having had relatively low levels of exploration
activity since the mid 1980s when a major phase of seismic prospecting and, to a
lesser extent, drilling was curtailed by a drop in oil prices and changes to the
UK fiscal regime with the removal of Petroleum Revenue Tax ('PRT') relief. By
the mid 1990s, the majority of the exploration areas had been relinquished,
enabling Egdon to acquire its extensive portfolio of UK interests, largely
through applications to the Department of Trade and Industry in the Eighth to
Twelfth Landward Licensing Rounds. Egdon has successfully been awarded an
interest in all of its applications over the past six years. As a consequence of
its UK geographic focus, Egdon has been able to secure and maintain Enterprise
Investment Scheme ('EIS') and Venture Capital Trust ('VCT') tax status thus
affording qualifying investors significant UK tax breaks.



The Directors believe the onshore UK also has a number of other positive factors
for Egdon, including:



  • Proven hydrocarbon systems in a number of sedimentary basins;
  • Extensive, accessible and affordable seismic and well database;
  • Opportunities to apply recent technological developments and new
    exploration ideas to identify

and exploit new and existing plays;

  • Relatively low drilling costs compared to offshore operations;
  • Cost effective oil export routes;
  • Ability to monetise discoveries with limited capital expenditure as
    compared to offshore operations;
  • De-regulated gas and electricity markets;
  • Benign operating environment; and
  • Political and fiscal stability



Egdon has built up a significant UK well and seismic database and developed
experience of operating in the onshore UK and within the UK planning system
since 1997. The Directors believe that these factors provide Egdon with a
significant competitive advantage.



In addition to identifying new exploration prospects, Egdon has acquired
interests in a number of undeveloped oil and gas prospects which were either
considered not economic at the time they were discovered or were not recognised
by the companies that drilled them. Avington and Waddock Cross are examples of
such prospects.



The Company's Oil & Gas Assets



Egdon has interests in nineteen exploration licences in the UK and France.
Egdon's licence interests cover a total area of approximately 4400 km(2). All of
the Company's licences are in proven hydrocarbon producing areas. Egdon is
recognised as a designated 'operator' by the UK Department of Trade and Industry
and is also operator of its French licence.  RPS Troy-Ikoda, the oil and gas
consultancy, has undertaken a review of certain of Egdon's oil and gas
properties and has reported that Egdon has attributable proven, probable and
possible reserves of 2.01 millions of stock tank barrels ('MMstb') and unrisked
best estimate contingent resources of 6.56 MMstb and 1.63 billions of cubic feet
of gas ('Bscf'). The Company estimates that it has unrisked best estimate
prospective resources of 71.9 MMstb and 96.39 Bscf.



Financial Record and Current Trading



A summary of the financial information on the Company, extracted from the
Prospectus, dated 16 December 2004, is set out below:


                                                                            2002            2003            2004
Year ended 31 July                                                             £               £               £

Profit and Loss
Turnover                                                                 105,258          22,677          33,457
Gross profit/(loss)                                                       76,746         (2,329)         (3,949)
Operating loss                                                         (183,041)       (226,417)       (219,978)
Loss on ordinary activities
    before and after tax                                               (138,240)       (199,919)       (246,350)


As at 31 July
Balance Sheet
Fixed assets                                                             135,695       1,275,408       1,779,650
Net current assets                                                     1,162,963         700,081         236,156
Creditors due after more than one year                                         -       (350,000)               -
Provisions for liabilities and charges                                  (34,633)        (34,633)        (28,800)

Net assets                                                             1,264,025       1,590,856       1,987,006



Management



The Directors of the Company are:



Philip Henry Peter Stephens, Non-executive Chairman

Philip, aged 62, was an investment banker in the City for 37 years, until his
retirement in 2002. He is currently non-executive Chairman of Oakdene Homes plc
and Invesco Geared Opportunities Trust plc and is a non-executive director of
Business Post Group plc and Foresight 4 VCT plc and until recently was a
non-executive Director of Eurodis Electron Group plc. Prior to retirement, he
was at stockbrokers Williams de Broe for four years as Joint Head of the
Corporate Finance department and before that, was head of UK corporate finance
at securities house UBS from 1995, having joined that firm in 1989. Philip
joined the Board of Egdon in October 2004.



Andrew David Hindle, Joint Managing Director

Andrew, aged 42, is a highly experienced geologist with over 20 years world-wide
experience, specialising in petroleum migration. He holds a first degree in
Geological Sciences gained in 1983 from Leeds University and following a year
with BP gained a MSc. Degree in Petroleum Geology in 1985 from Aberdeen
University. In 1998 he completed a PhD (part-time) through the Open University
for research into petroleum migration. He worked for Texaco from 1985 until 1996
on UK and international exploration and development projects, working overseas
from 1990 to 1994. Subsequently he worked for Anadarko Algeria Corporation from
1996 to 1997. In 1997 he became a founding director of Egdon. Andrew is also a
Director of Geofocus Limited, Toffee Limited, Eskbank Resources Limited and
Eskbank Resources (Canada) Limited.



Mark Anthony William Abbott, Joint Managing Director

Mark, aged 43, is a geophysicist with over 20 years worldwide experience. He
holds a first class honours degree in Exploration Sciences (Geology/Geophysics/
Mining Engineering) gained in 1985 from the University of Nottingham. He worked
for the British Geological Survey from 1985 to 1992 in the U.K. and overseas,
mainly involved in onshore basin analysis in the U.K. Between 1992 and 1996 he
worked in the International Division of British Gas Exploration and Production
Limited evaluating exploration and appraisal projects. From 1996 to 1997 he was
employed by Anadarko Algeria Corporation as a Staff Exploration Geophysicist. In
1997 he became a founding director of Egdon. Mark is also a director of MA
Exploration Services Limited, an exploration consulting company.



Kenneth Maurice Ratcliff, Non-executive Director

Ken, aged 54, is a chartered accountant with extensive finance and business
experience. He is currently the  accountant at Epsom College and at GDC UK
Limited. He was an audit manager with Touche Ross & Co in London before moving
into accountancy and finance positions within the oil and gas industry in 1978.
Ken has previously held senior management positions with GDC UK Limited, Ensign
Geophysics Limited, Seismic Geocode Limited, Tenneco Corporation and Merlin
Geophysical Limited. Ken joined the Board of Egdon in 2001.



Walter Rookehurst Roberts, Non-executive Director

Walter, aged 53, is an oil and gas lawyer with a strong record in commercial and
legal management. Walter qualified as a solicitor with Simmons & Simmons before
joining Phillips Petroleum in 1980. He then worked for Lasmo in both the U.K and
in Australia where he set up its legal department. Walter was the principal
negotiator for UK joint venture commercial negotiations and gas sales for
Talisman until 1995. More recently he was the London partner of Cummings & Co
and he is currently an executive director of Pinnacle Energy Limited and a
non-executive director of Bow Valley Petroleum (UK) Limited and other related
Bow Valley companies. Walter joined the Board of Egdon in 2001.



John George Rodway Rix, Non-executive Director

John, aged 70, was a well respected oil industry analyst until retirement in
1994, holding positions at N M Rothschild & Sons, de Zoete & Bevan and Greig
Middleton & Co. John continues to be actively involved within the investment
community and is also chairman and managing director of Dorset Exploration
Limited. John joined the Board of Egdon in 2001.




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