Operations Update

Egdon Resources PLC
10 January 2006






10th January 2006

For immediate release



                              EGDON RESOURCES PLC



                               Operations Update



Egdon Resources Plc ('Egdon' or 'the Company') is pleased to provide an update
on drilling and testing operations on its UK operated licences.

The BDF28 drilling rig has completed drilling and logging operations at
Kirkleatham-4 on licence PEDL068.  The Kirkleatham-4 well reached a TD of 936m
within rocks of Carboniferous age on the 7th January 2006.  During drilling gas
shows were encountered within the target Permian age Zechstein carbonates.
Logging operations have now been completed and confirmed the presence of a c.
19m gas column within the Cadeby Formation.  The top of the Cadeby Formation was
penetrated at 804.3m where a drilling break and high gas readings were observed.
Evaluation of wireline log data indicates high gas saturations and good
porosity development within the gas bearing interval.  The Kirkleatham-4 well
will be completed with 7' casing and the BDF28 rig released. Testing operations
will be undertaken using a work-over rig.   Further activity at Kirkleatham will
be assessed once test results have been evaluated.

On completion of operations at Kirkleatham-4 the drilling rig will mobilise to
the Westerdale-1 well site in North Yorkshire where drilling operations are
expected to commence during the week of 16th January 2006. Westerdale-1 is
designed to test an accumulation 50.5 m up-dip and 3.7 km to the north of the
Ralph Cross-1 gas discovery made by Home Oil Limited in 1966.  Ralph Cross-1
tested gas at flow rates of up to 6 million cubic feet of gas per day from a
20.5 m gas column in fractured Zechstein carbonates.  Additional reservoir
objectives are present in the Westerdale-1 well both within the Zechstein and in
the underlying Carboniferous sequences.  Westerdale-1 will be directionally
drilled to a total depth of around 1250 m and will take around 21 days to drill.

On completion of operations at Westerdale-1 the rig will move to Dorset to drill
the Portland-1 well which is designed to test the thickness and suitability of a
salt sequence for the creation of caverns for gas storage.  Site construction
has commenced at the Portland-1 well site.

The Company can also report that at Waddock Cross-3, testing operations are
ongoing in the horizontal section drilled in the Cycle 3 of the Bridport
Sandstone.  Initial results indicate pump constrained flow rates of 270 to 400
barrels of fluid per day with an average 12% oil cut.  This equates to 32 to 48
barrels of oil per day.  The produced oil has not experienced the emulsion
problems encountered with the Waddock Cross-2 well test.  Downhole pressure
gauges will be recovered during the next week and the data analysed to determine
options for the future testing and development of the Waddock Cross
accumulation.





For further information please contact:
Egdon Resources Plc                                             01256 702292
Mark Abbott, Joint Managing Director
Andrew Hindle, Joint Managing Director

Buchanan Communications                                        020 7466 5000
Eric Burns
Ben Willey





Notes to the Editors:

Kirkleatham-4 and Westerdale-1 are located in the PEDL068 licence in the
Cleveland Basin where the Company holds a 20% working interest but is carried
for 10% of the first well, Kirkleatham-4, and also holds an option to increase
its interest to 25%. The Waddock Cross-3 well was drilled within the PL090 in
the Wessex Basin where the Company holds a 45% working interest.


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 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:


     1)   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.

     2)   A gas storage business initially focused on the prospective
          development of a major salt cavern gas storage facility beneath the 
          Isle of Portland, Dorset.



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