Gas Storage Announcement

Egdon Resources PLC
24 July 2007




Immediate release                                                 24 July 2007

                              EGDON RESOURCES PLC

    Investigation of a site for a potential new gas storage facility in 
                               Northern Ireland

Egdon Resources Plc ('Egdon'), the UK focused energy company, is pleased to
announce that a wholly-owned subsidiary, Portland Gas NI Limited ('Portland
Gas') is being granted an exploration licence from The Crown Estate to evaluate
the suitability of a Permian salt sequence deep below Larne Lough, County
Antrim, Northern Ireland to create caverns to store natural gas.

In 1981 a borehole drilled close to the docks in Larne encountered a 113 metres
thick sequence of Permian salt at a depth of 1688 meters. Portland Gas plans to
carry out a seismic survey during October 2007, with the contractor IMC
Geophysics International Limited, to confirm the extent of the salt sequence
seen in the old borehole. Data will be acquired in the northern half of Larne
Lough using shallow-draft boats and on roads adjacent to the Lough by vibroseis
trucks.
The management of the project is being undertaken by the engineering and
environmental consultancy RPS (Ireland), with technical support from DEEP.
Underground Engineering GmbH and Geo International Limited.

Commenting on the proposed new project, Andrew Hindle, Managing Director of
Portland Gas, said 'The Northern Ireland gas market has been growing
significantly over recent years and without access to local gas storage
facilities it could become vulnerable to supply disruptions. With no depleted
gas fields in Northern Ireland, the creation of salt caverns offers the best
option to store significant quantities of gas. There is a limited distribution
of salt beds in the subsurface of Northern Ireland and we believe the Larne
region offers the most prospective area, provided that the distribution of the
salt is confirmed, following the seismic programme, and a suitable surface site
can be secured. We will consult with stakeholders and local public groups over
the coming months to seek their views and advice. The announcement confirms our
commitment to develop a portfolio of gas storage and infrastructure assets'.

For further information please contact:

Egdon Resources Plc
Andrew Hindle, Joint Managing Director                      020 8332 1200
Mark Abbott, Joint Managing Director                        01256 702 292

Buchanan Communications
Ben Willey                                                  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 has developed 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.

Portland Gas NI Limited

Portland Gas NI Limited, a Northern Ireland registered company, is one of a
group of companies owned by Portland Gas Limited, a wholly owned subsidiary of
Egdon Resources Plc. The Portland Gas group of companies, initially set up to
develop the Portland project in Dorset, will seek to make a significant
contribution to the UK's energy infrastructure and will seek to acquire and
develop a portfolio of gas storage assets in the UK and internationally. Details
of the group's activities can be found at the Portland Gas website
www.portland-gas.com.



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