Operations Update

Egdon Resources PLC
26 July 2007



For Immediate Release                                             26th July 2007


                         EGDON RESOURCES PLC ('EGDON')

                              Operations Update


Egdon Resources Plc ('Egdon'), the onshore UK focused energy company, is pleased
to provide an update on its UK and French oil and gas operations.


Keddington Oil Field (PEDL005(Remainder))

Egdon is pleased to advise that during July oil exports commenced from the
Keddington Oil Field in licence PEDL005 (Remainder), where Egdon holds a 100%
interest. Workover operations were undertaken on the Keddington-1z well during
May and June 2007 with the installation of a new downhole completion and pump.
During the initial period of production following the workover the well was
pumped at an average rate of around 100 barrels of fluid per day, with a 35% oil
cut yielding 35 barrels of oil per day with only limited drawdown of the fluid
level in the well. The pumping rate was increased on 18th July and the well has
since been producing at an average fluid rate rate of 112 barrels per day with
an average oil cut of 43% yielding 48 barrels of oil per day. Again only limited
drawdown has been observed in the well.

The forward plan is to optimise field production by further increasing the pump
rate of the Keddingtonn-1z well and restoring free flowing oil and gas
production from the Keddington-2y well.

Egdon can also advise that it has received all required regulatory and
environmental approvals for continuing production from the site.


Grenade-3 (St Laurent)

In operated French permit 'St Laurent', where the Company's wholly owned
subsidiary Egdon Resources (New Ventures) Limited holds a 33.42% interest, a
significant milestone has been achieved with receipt of approval for the
drilling of the Grenade-3 well from the DRIRE Landes, the permitting authority.

A civil engineering contractor has been appointed and site construction has
commenced. A rig has been secured and long lead items are being procured to
enable the well to begin drilling as planned during October 2007.

The Grenade-3 well will be drilled as a step-out to the Grenade -1 discovery
well, drilled by Elf in 1975, which penetrated a 97 metre column of heavy oil
(10 degree API) in a highly porous and permeable limestone reservoir at a depth
of 2176 metres. The Grenade-3 well will be drilled as a vertical pilot hole
designed to confirm the oil column and reservoir distribution. Contingent upon
the results of this pilot hole a horizontal sidetrack will be drilled and
completed for a long term production test to be undertaken.

The best estimate oil in place for the field has been mapped by Egdon as 300
million barrels (with a range of 95 to 945 million barrels). The production test
would utilise modern completion, pumping and viscosity reduction methods in the
horizontal reservoir interval to determine the likely recoverable reserves and
commerciality of the Grenade oil accumulation


Avington 3z (PEDL070)

Egdon has been advised by the operator Star Energy plc that drilling operations
have now been completed on the Avington-3z horizontal well in Weald Basin
licence PEDL070, where Egdon holds a 20% interest. This well was a sidetrack of
the Avington-3 vertical well which was drilled during 2006. The Avington-3z well
has been logged and completed for production testing which is expected to
commence during August 2007.


Burton Agnes-1 (PEDL071)

In Egdon operated North Yorkshire licence PEDL071, where the Company has a 25%
interest, good progress is being made for the planned drilling of the Burton
Agnes-1 exploration well during the fourth quarter of 2007. Contracts for the
site lease, site construction and drilling rig are in the final stages of
negotiation and long lead items have been procured. Site construction is
expected to commence during August 2007.

The Burton Agnes-1 well will test a Leman Sandstone prospect with mapped gas in
place of up to 50 billion cubic feet. Egdon's share of the costs of the drilling
and any subsequent testing of the well will be largely carried.

Commenting on recent developments, Mark Abbott, Joint Managing Director of Egdon
said:

'We have been making good progress on our UK and French operations over recent
months and I am happy to report a significant milestone for the company with the
commencement of our first sustained production from the Keddington Oil Field. We
look forward to increased production from the field over the coming months by
optimising the rates from Keddington-1z and re-establishing production from
Keddington-2y.

We can also look forward to an active exploration drilling programme during the
fourth quarter of 2007 with wells planned at Burton Agnes-1 in North Yorkshire,
Grenade-3 in SW France, which will represent Egdon's first international
drilling activity, and on the Tees prospect in block 42/27, which will be the
Company's first offshore well.


We also await the results of the Avington-3z production test with interest.'


For further information please contact:

Egdon Resources Plc

Mark Abbott, Joint Managing Director      01256 702 292
Andrew Hindle, Joint Managing Director    0208 3321200 

Buchanan Communications

Ben Willey                                020 7466 5000
Nicholas Melson                           020 7466 5000

Seymour Pierce
Jonathan Wright                           020 7107 8000



Notes to Editors:

Company Background

Egdon is an established, UK-based energy company primarily focused on 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 distinctive businesses:


   •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 development of a major
    salt cavern gas storage facility on Portland, Dorset.


Egdon plans to demerge the two businesses on or soon after 21 December 2007.

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 Geoscientist with
over 21 years experience.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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