Acquisition of Licence

Egdon Resources PLC
06 December 2006

6 December 2006

For immediate release





                         EGDON RESOURCES PLC ('EGDON')



           Agreement for the acquisition of the Keddington Oil Field,

                        PEDL005 (Remainder), Onshore UK



Egdon Resources Plc ('Egdon'), the onshore UK focused energy company, is pleased
to announce that it has reached agreement with Roc Oil (GB) Limited ('Roc') for
the purchase of its entire interest in Petroleum Exploration and Development
Licence PEDL005 (Remainder).  PEDL005 (Remainder), located in Lincolnshire,
covers a total area of 23.57 km2 and incorporates the Keddington Oil Field.



The PEDL005 licence is split into two sub-licences; PEDL005 (Remainder), which
is the subject of this acquisition; and PEDL005 (Saltfleetby) which contains the
Saltfleetby gas field owned 100% by WINGAS Storage UK Limited ('WINGAS'), and
which is not affected by this acquisition.



The Keddington Oil Field is located to the east of the town of Louth and was
discovered by Roc in 1998.  The field produces from a sandstone reservoir of
Westaphalian (Carboniferous) age at a depth of around 2180 metres. The field has
two production wells; Keddington-1, which is a pumped well which was producing
around 20 to 30 barrels of oil per day ('bopd') with around a 60% water cut, and
Keddington-2 which was free-flowing dry oil at 10-15 bopd along with up to
110,000 cubic feet of gas per day.  The gas was being flared.  Keddington has
produced a total of 173,000 barrels of oil to date.



Keddington is not currently in production.  The Keddington-1 well has been
subject to ongoing tubing and pump problems in recent years and has been shut-in
since June waiting on a work-over rig.  The Keddington-2 well has not been put
back on production since a pressure survey in March 2006.



Egdon plans to re-complete the Keddington-1 well with a deeper set pump to
optimise pumped production and also to restore free-flowing production from the
Keddington-2 well.  This work-over programme is planned for early 2007.  Egdon
will also investigate the potential to utilise the produced gas in a gas engine
already installed at Keddington to generate electricity for use on site, thus
reducing operating costs. WINGAS personnel from Saltfleetby provided operational
support at Keddington for Roc on a contract basis and will continue to provide
this service to Egdon.



PEDL005 (Remainder) also contains the North Somercotes Prospect which is mapped
on 3D seismic data.  Egdon will re-evaluate this prospect as part of its
re-assessment of the remaining potential in the licence.  Planning approval has
already been received for an exploration well on the North Somercotes Prospect.



The agreement is subject to DTI consent and completion of transfer
documentation.  On completion, Egdon will hold a 100% interest in PEDL005
(Remainder).



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



'We are delighted to have concluded this agreement with Roc which will add
near-term production and cashflow in one of Egdon's core areas of the onshore
UK.  The acquisition provides the potential to re-develop the Keddington Oil
Field to enhance and extend the producing life of the facility, giving Egdon an
early opportunity to prove itself as a UK onshore production operator.  The
presence of a drill-ready prospect at North Somercotes identified on 3D seismic
data and with planning consent already in place provides additional
opportunities within the licence and is a valuable addition to our prospect
inventory.'





For further information please contact:



Egdon resources Plc

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




Buchanan Communications

Eric Burns                                           01943 883 990
Ben Willey                                           020 7466 5000



Seymour Pierce

Jonathan Wright                                      020 7107 8000



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 nineteen 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 beneath the Isle of
Portland, Dorset. Egdon has recently announced plans to demerge the two
businesses during 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 Geophysicist with
over 21 years experience.




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