Interim Results

Egdon Resources PLC
30 April 2007


For immediate release                                              30 April 2007


                              Egdon Resources Plc

                          ('Egdon' or ' the Company')

                                Interim Results


Egdon Resources Plc, the UK-based energy company primarily focused on the
hydrocarbon-producing basins of the onshore UK, today announces its Interim
Results for the six months ended 31 January 2007.

The Company is listed on AIM under the code EDR.

Operational Highlights

Gas Storage


   • Planning applications and pipeline construction authorisation
     application submitted for Isle of Portland Gas Storage Project on 29 March
     2007
   • Project parameters confirmed as 1,000 million cubic metres capacity
     facility with injection/ withdrawal rates of 20 million cubic metres per day
   • Appointment of Penspen Limited as project managers for Front End
     Engineering Design and tendering of construction contracts
   • Planned demerger of gas storage business

Oil & Gas Exploration

   • Acquisition of PEDL005 (Remainder) containing the shut-in Keddington Oil
     Field with work over and resumption of production planned for May 2007
   • Anticipated production and/or testing of Kirkleatham, Avington and
     Waddock Cross during 2007
   • Planning approval received for Burton Agnes-1 exploration well,
     anticipated summer 2007 spud
   • Further drilling activity anticipated at Avington, Grenade, Holmwood and
     Tees during 2007
   • Currently hold 20 licences in UK and France

Financial Highlights

   • Loss for period of £356,000 (2006: £238,000)
   • Loss per share for period of 0.58p (2006: 0.45p)
   • Completion of an institutional placing and exercise of Directors'
     options during October 2006 raising £11.85 million net of expenses
   • Debt free with strong cash position (Net funds as at 31 January 2007
     £11.8 million; 31 January 2006: £6.3 million)

Commenting on the results, Philip Stephens, Chairman of Egdon said:

'I am pleased to report further progress in all areas of the business. A key
project milestone has been achieved for the Isle of Portland gas storage project
with the submission of the planning applications. With the recent acquisition of
the Keddington Oil Field and plans for production at a number of our other
discoveries the Company is on track to see first production and revenues during
2007. The planned demerger of the two underlying businesses of the Group will
enable shareholders to benefit from the value creation of the oil and gas
exploration planned for the coming months, in addition to allowing the storage
business to be financially independent, as its requirements for capital
increases.'


'We look forward to another exciting period ahead.'


For further information please contact:

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

Seymour Pierce                                                     020 7107 8000
Jeremy Porter

Buchanan Communications                                            020 7466 5000
Ben Willey
Alastair Watson


Chairman's Statement


Overview

The Company recorded a consolidated loss of £356,000 for the six months ended 31
January 2007 (2006: £238,000). This equates to a loss per share for the period
of 0.58p compared to 0.45p for the six months ended 31 January 2006.

The Company had net cash of £11.8 million as at 31 January 2007 (31 January
2006: £6.3 million). During October 2006, your Company raised £11.85 million
after expenses through a share placing of 6,315,790 new ordinary shares of 1p
each at 190p and exercise of Directors' options, in order to fund the continuing
costs of our gas storage project and drilling and development activity within
the oil and gas business.

Proposed Demerger

During the period your Company has continued to develop two distinct businesses:
an oil and gas exploration and production business, focused on the UK onshore,
and a gas storage business, initially focused on developing a salt cavern gas
storage facility in Dorset through the wholly-owned subsidiary Portland Gas
Limited.

As previously reported your Board proposes to demerge these two distinctive
businesses into two separate publicly-traded companies. The demerged companies
will provide a focused use of capital and management resources to maximise
shareholder value.

I am able provide an update on progress with the demerger which will be
undertaken via a scheme of arrangement under section 425 of the Companies Act
1985. HMRC has given clearance under

section 707 of the Income & Corporation Taxes Act 1988, and sections 138 and 139
of the Taxation of Capital Gains Act 1992.  Whilst the taxation aspects of the
demerger mechanism meet with approval, HMRC have confirmed a 'return of value'
would arise in relation to investors who subscribed under the terms of the
Enterprise Investment Scheme in December 2004.   To avoid adverse tax
consequences for this body of shareholders, it will not be practicable to
complete the demerger before 21 December 2007, being the date falling three
years after the Company's admission to AIM. The Directors currently intend to
complete the demerger as soon as practicable on or after that date.

Gas Storage

I am pleased to report that a key project milestone has been achieved for the
Isle of Portland gas storage project with the submission on 29 March 2007 of a
series of planning applications to Dorset County Council for the facilities and
a pipeline construction authorisation application to the Department of Trade and
Industry. These submissions are the culmination of two years of effort by a
dedicated group of advisors and consultants. I am also pleased to report that a
new Portland Gas website has been developed to provide further details of the
project for shareholders and other interested parties and to support the
planning consultation process. The website can be found at www.portland-gas.com.


To ensure continued momentum with the project Portland Gas entered into a
project management contract with Penspen Limited ('Penspen') during December
2006 to manage the Front End Engineering Design ('FEED') and tendering for the
Engineering, Procurement and Construction ('EPC') of the proposed project. The
management team also includes representatives from other organisations who have
been instrumental in developing the project design over the past 2 year, such as
DEEP. Underground Engineering GmbH of Germany. N M Rothschild & Sons, the
financial advisors to Portland Gas Limited, have continued to make progress in
respect to securing the project financing for the project.

This ongoing activity and expenditure is being undertaken so that, assuming
planning consent is granted during the second half of 2007, construction could
commence in the fourth quarter of 2007, first gas delivered from storage to the
UK market in the winter of 2010 with full capacity being achieved during 2013.

Oil and Gas Exploration

I am also pleased to report continued progress in development of our oil and gas
exploration and production business.

The acquisition of the Keddington Oil Field in East Midlands will see your
Company's first oil production this May following a planned work over of the
Keddington-1z well. Further enhancements to the field are planned to maximise
revenues from the field over the coming years.

The acquisition of Keddington is an indication of our current focus for the oil
and gas business which is to develop a sustainable revenue stream. Progress has
been made on the development of the exploration successes made by the Company
during recent drilling campaigns. Evaluation and feasibility studies have been
completed on the Kirkleatham gas discovery with a view to producing first gas
during the winter of 2007. New seismic data has been acquired over the Avington
oil discovery to define the path of the Avington-3 sidetrack which is
anticipated to be drilled during 2007. Studies have also been completed on the
Waddock Cross oil accumulation with a view to further production testing.

At our French operations a rig has been secured to drill the Grenade-3 well in
SW France towards the end of 2007. Grenade-3 and a subsequent contingent
horizontal sidetrack will appraise the Grenade heavy oil accumulation.

I can also report that planning consent has been granted for the Burton Agnes-1
exploration well in North Yorkshire. This well which will target a prospect with
potential for up to 56 billion cubic feet of gas ('Bcf') in place is now
expected to be drilled during the summer of 2007. Egdon has a 25% carried
interest in this well having farmed-out part of its interest during 2006.

We await the outcome of the planning application for the Holmwood-1 exploration
well in licence PEDL143 located in Surrey, where Egdon holds a 38.4% interest in
a well defined prospect located between known gas and oil accumulations. We also
anticipate the drilling of our first offshore well on the Tees Prospect in RWE
Dea operated block 42/27.

Outlook

The outcome of the Isle of Portland planning applications during the second half
of 2007 will be a pivotal point in the development of the Company. Meanwhile we
are continuing to progress the project in the coming months in anticipation that
full planning permission will be granted, so that when that point is reached we
can start the construction phase of the project immediately.

Our key focus in our oil and gas business is to move into production and revenue
as soon as possible. This milestone will be achieved at Keddington shortly, and
is expected to be followed by production at Kirkleatham towards the end of the
year.

The coming year may also see the relinquishment of a number of non-prospective
licences or part-licences in the UK as part of the normal exploration cycle. As
such your Company will further look to strengthen its licence position through a
significant new-ventures focus designed to increase the exploration opportunity
base of the Company.

By the end of 2007, we hope to have achieved the demerger into the two separate
AIM listed companies with two viable businesses independent of each other. We
remain optimistic that our goals will be met and we thank you, our shareholders
for your continuing support


Philip Stephens

Chairman

30 April 2007


Operations Review - Gas Storage

Portland Gas Limited ('Portland Gas'), a wholly owned subsidiary of Egdon
Resources Plc, has reached a key project milestone with submission of planning
for the Isle of Portland gas storage project during March 2007. The project is
on track, subject to a successful outcome to the planning applications, to
become a significant part of the UK's gas infrastructure in the coming years.

Portland Gas

The distinctive nature of the gas storage business has been recognised and it is
proposed to demerge Portland Gas in late 2007. The demerged gas storage
business, to be called Portland Gas Plc, will exploit opportunities for UK and
international growth in addition to the construction of the Portland gas storage
facility. In advance of the demerger, a new board is currently being constructed
for Portland Gas Limited ('Portland Gas') with the skills to develop business
opportunities currently identified by the team in the gas storage and
infrastructure arena.

The Isle of Portland Gas Storage Project

Portland Gas Storage Limited, a wholly owned subsidiary within the Portland Gas
group of companies, is seeking permission to build a natural gas storage
facility on Portland. The application also includes the infrastructure necessary
to take gas in and out of the National Grid.

The project will comprise 14 caverns created within Triassic salt capable of
storing 1,000 million cubic metres (35 billion cubic feet) of natural gas. The
facility is being designed to enable the injection or withdrawal of gas at a
rate of 20 million cubic metres per day (0.7 billion cubic feet per day). At
these rates the entire storage volume could be filled or emptied in 50 days and
have the capability when fully developed to provide up to 5% of the UK national
gas demand on a winter's day. Portland Gas will be constructing a 37 kilometre,
36 inches in diameter, pipeline connecting the Isle of Portland to the National
Grid.

The caverns will be operated under a constant pressure with gas in the caverns
being replaced by brine (saltwater) when it is withdrawn. The brine will be
stored east of Dorchester, at Stafford Farm within a deep sandstone saltwater
aquifer. An 18 kilometere plastic brine pipeline, 30 inches in diameter, will be
laid within the gas pipeline trench for the southerly section of the route to
transport the brine to and from the brine storage site.  There will be a 9
kilometre section across Weymouth Bay and the remainder of the pipeline route
will be trenched below farmland. Directional drilling will be used to place the
pipeline deep below the ground under the most environmentally sensitive sites
(for example below the Heritage Coast on the north side of Weymouth Bay).

There are very few areas in the UK with suitable geology to develop a gas
storage facility. The site at Upper Osprey within Portland Port is well
positioned to reach a thick salt layer shown to be suitable for the creation of
caverns following the drilling of a borehole from the site in 2006. The site is
brownfield and not overlooked by any residential property on the Isle of
Portland.

N M Rothschild & Sons as financial advisors to Portland are advising Portland
Gas with the financing of the project. This will include securing storage
off-take agreements with customers (such as the major utilities, gas producers,
financial institutions and traders). Portland Gas has secured a gas shipper
licence from Ofgem, the gas regulator, and is developing the in-house structures
and building the skills necessary to operate a gas storage facility safely and
efficiently.

Operations Review - Oil and Gas

Egdon holds interests in twenty licences (ten operated) in the UK and France,
located within proven oil and gas producing areas, containing a balance of oil
and gas prospectivity. The Company has an active exploration, appraisal and
field development programme planned for the coming year. A key focus will be the
development of a revenue stream via production from our recently acquired oil
field at Keddington and existing discoveries at Kirkleatham and elsewhere.

Acquisition of the Keddington Oil Field

The Company has completed the acquisition from Roc Oil (GB) Limited of Licence
PEDL005 (Remainder), which incorporates the currently shut-in Keddington Oil
Field, for consideration of £250,000 in cash.

Production at Keddington is from a sandstone reservoir of Westphalian
(Carboniferous) age at a depth of around 2,180 metres. The field has two
production wells, Keddington-1z, which is a pumped well which was producing
around 20 to 35 barrels of oil per day ('bopd') with 50- 60% water cut, and
Keddington-2y which was free-flowing oil at 10-15 bopd along with up to 110,000
cubic feet of gas per day. The field has produced a total of 173,000 barrels of
oil to date which represents only a small percentage of the mapped oil in place.

A workover of the Keddington-1z well is due to commence in May 2007 to install
new tubing, rods and a deeper set pump to optimise pumped production from this
well. At the same time Egdon will restore free-flowing production from the
Keddington-2y well.

Planned Drilling Activity during 2007

Burton Agnes-1

The Company has received planning consent for the drilling of the Burton Agnes-1
well in its operated North Yorkshire Licence PEDL071. The well will target the
Fraisthorpe Prospect, a Permian Leman Sandstone prospect at a depth of around
1800 metres located some 7 kilometres to the south of the Caythorpe gas field.
The prospect is mapped as having potential for up to 56 billion cubic feet
('Bcf') of gas in place. Egdon holds a 25% carried interest in the well which is
anticipated to be drilled during the summer of 2007.

Grenade-3

The Company, through its wholly owned subsidiary Egdon Resources (New Ventures)
Ltd., has a 33.423% interest and operatorship of the St Laurent Permit in SW
France. Here, a rig has been secured and detailed permitting is ongoing for the
drilling of the Grenade-3 well. This will comprise a pilot hole and a subsequent
horizontal sidetrack for production testing. This drilling activity, which is
planned for the fourth quarter of 2007, will appraise a heavy oil accumulation,
discovered by Elf in 1975 when the Grenade-sur-Adour-1 well found a 97 metre
column of 10o API oil. Between 1976 and 1985 around 8,000 barrels of oil were
recovered from intermittent tests, the well being finally plugged and abandoned
during a period of low oil prices in 1985

Integration of proprietary 2D and 3D seismic data, acquired during 2005, with
the results of a study of core data, has enabled the definition of a large
three-way up-dip pinch-out of the reservoir on a low energy carbonate platform.
Significant in place oil resources (independently reported at between 68 and

485 millions of barrels) have been mapped for Grenade.

Avington-3z

Egdon has a 20% interest in licence PEDL070 which contains the Avington oil
discovery. It is anticipated that the Avington-3 well, drilled during 2006, will
be side-tracked as a potential production well during the summer of 2007. The
final well location will be defined by interpretation of a 2D seismic survey
acquired over parts of the Avington prospect during 2006.

Holmwood-1

Egdon holds a 38.4% interest in licence PEDL143 in the county of Surrey, which
holds the Holmwood Prospect. Holmwood is a robust anticlinal structure located
between known gas and oil accumulations. Egdon Best Estimate Contingent
Resources of 16.6 Bcf have been independently reported. A planning application
for the well supported by an Environmental Impact Assessment and Environmental
Statement has now been submitted. Subject to a successful outcome to planning it
is hoped that the Holmwood-1 well will be drilled during late 2007.

Tees Prospect

Egdon has a 10% non-operated interest in offshore block 42/27 which contains the
Tees Prospect. The Tees Prospect is a robust Leman Sandstone structural prospect
identified on proprietary 3D seismic data and mapped to contain Net Egdon Best
Estimate Prospective Resources of 6 Bcf. A rig slot has been secured and the
well is planned to be drilled during the autumn of 2007.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 January 2007
                                                   Six         Six      
                                                 months      months      Year
                                                  ended     ended       ended
                                                31-Jan-07 31-Jan-06 31-Jul-06
                                                  £'000     £'000       £'000

Turnover                                                0         0        14
Cost of sales                                           0       (2)      (14)

Gross profit                                            0       (2)         0

Administrative expenses                             (456)     (418)     (932)
Other operating income                                 26       118       248


Operating loss                                      (430)     (302)     (684)
Interest receivable                                    74        64       165
Interest payable                                        0         0         0

Loss on ordinary activities before taxation         (356)     (238)     (519)
Taxation on profit on ordinary activities               0         0         0

Loss on ordinary activities after taxation          (356)     (238)     (519)

Loss for the period retained                        (356)     (238)     (519)

Earnings per share (p)                             (0.58)    (0.45)    (0.94)




CONSOLIDATED BALANCE SHEET
As at 31 January 2007

                                            31-Jan-07 31-Jan-06 31-Jul-06
                                              £'000     £'000     £'000

Fixed assets
Intangible assets                               9,973     3,660     8,284
Tangible assets                                     8         2         3
                                                9,981     3,662     8,287

Current assets
Debtors - amount falling due within one           253     1,137     1,038
year
Investments                                    10,812     5,082     1,506
Cash at bank                                      962     1,257       387

                                               12,027     7,476     2,931

Creditors - amount falling due within one       (641)     (716)     (928)
year

Net current assets                             11,386     6,760     2,003

Total assets less current liabilities          21,367    10,422    10,290

Creditors - amounts falling due after more          0         0         0
than one year

Provision for liabilities                           0     (263)     (412)

                                               21,367    10,159     9,878

Capital and reserves
Called up share capital                           655       571       571
Share premium account                          20,387     8,626     8,626
Profit and loss account                           325       962       681

Equity shareholders' funds                     21,367    10,159     9,878




CONSOLIDATED CASHFLOW STATEMENT
for the six months ended 31 January 2007

                                                        Six       Six      Year
                                                      months    months
                                                       ended     ended     ended
                                                     31-Jan-07 31-Jan-06 31-Jul-06
                                                       £'000     £'000     £'000

Net cash flow from operating activities                  (342)     (425)     (706)

Return on investment and servicing of finance

Interest received                                           74        64       165
Interest paid                                                0         0         0

Net cash flow from returns on investments and               74        64       165
servicing of finance

Tax paid                                                     0         0         0

Capital expenditure and financial investment
Payments for intangible fixed assets                   (1,689)   (1,061)   (5,326)
Purchase of tangible fixed assets                          (6)         0       (2)
Disposal of tangible fixed assets                            0         0         0
Net cash flow from capital expenditure and financial   (1,695)   (1,061)   (5,328)
investment

Net cash flow before use of liquid resources and       (1,963)   (1,422)   (5,869)
financing

Management of liquid resources
(increase)/decrease in short term deposits             (9,306)   (3,037)       539

Financing
Repayment of debentures                                      0         0         0
Issue of shares                                         12,325     4,999     4,999
Costs associated with issue of shares                    (480)     (186)     (186)

Net cash flow from financing                            11,845     4,813     4,813

Increase/(decrease) in cash                                576       354     (517)




RECONCILIATION OF OPERATING LOSS TO NET CASHFLOW FROM OPERATING ACTIVITIES
for the six months ended 31 January 2007
                                              Six months   Six months     Year
                                                ended        ended        ended
                                              31-Jan-07    31-Jan-06    31-Jul-06
                                                £'000        £'000        £'000

                             Loss for period        (430)        (302)       (684)
                                depreciation            1            1           2
                                amortisation            0            0          41
                         movement in debtors          785        (904)       (805)
                       movement in creditors        (286)          610         422
                      movement in provisions        (412)          170         318
                       Operational cash flow        (342)        (425)       (706)



NOTES TO THE ACCOUNTS


 1. Interim accounts have been approved by the Directors' and have been prepared
    on the basis of the accounting policies set out in the 2006 Annual Report
    and Accounts. The 31 July 2006 figures have been extracted from audited
    accounts and the audit report was unqualified. The profit and loss account
    has been prepared on the basis that all operations are continuing
    operations. There are no recognised gains or losses other than those passing
    through the profit and loss account. New accounting standards introduced
    since the last annual report was published have had no impact on the
    accounting treatment adopted in the preparation of the interim accounts.


2.  The results for the interim periods have not been subject to
    independent review as defined in the Auditing Practices Board Bulletin 1999/4
    and do not constitute full accounts within the meaning of section 240 of the
    Companies Act 1985.


3.  Administrative expenses include movements in the provision for National
    Insurance costs on the potential exercise of share options in existence at each
    period end. Following the exercise of options in October 2006 there were no
    options outstanding at 31 January 2007. The provision at 31 July 2006 and 31
    January 2006 was £412,000 and £263,000 respectively.




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