Placing of Ordinary Shares

Egdon Resources PLC
31 October 2006




For immediate release                                           31 October 2006





                      EGDON RESOURCES PLC ('THE COMPANY')



                           Placing of Ordinary Shares



Egdon Resources Plc (AIM: EDR), the UK focused energy company, is pleased to
announce the placing of 6,315,790 new ordinary shares of 1p each at 190 pence
per share (the 'Placing Shares') to raise £12 million before expenses.  The
shares were placed by Seymour Pierce Limited with new and existing institutional
investors.



In addition, 1,000,000 shares have been placed at 190p per share by Seymour
Pierce on behalf of each of Mark Abbott and Andrew Hindle, Joint Managing
Directors, following the exercise by each of them today of their remaining
1,000,000 options in the Company.



Following the placing, the Company will have 65,465,764 ordinary shares in
issue.



Application has been made for the shares to be admitted to AIM and admission of
the shares is expected to be on or around 3 November 2006.



The net proceeds of the Placing receivable by the Company, which are expected to
be £11.52 million, will provide equity capital for the Company to enable it to
commence construction of the proposed Portland gas storage facility immediately
upon award of planning permission. This will provide funds to develop further
storage opportunities both in the UK and internationally, and fund the 2007
exploration and appraisal drilling programme.



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



'The placing provides funding for Egdon to continue the development of its gas
storage business as well as continue its successful drilling programme on the UK
onshore and France. I am delighted that the placing has been completed and am
pleased to welcome a number of new investors to our shareholders register.'



For further information please contact:


Egdon resources Plc                                          01256 702 292
Andrew Hindle, Joint Managing Director
Mark Abbott, Joint Managing Director

Buchanan Communications
Eric Burns                                                   01943 883 990
Ben Willey                                                   020 7466 5000

Seymour Pierce                                               020 7107 8000
Jonathan Wright



Notes for Editors



Egdon Resources has also announced Preliminary Results for the year ended 31
July 2006 in a separate statement issued earlier today.



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 business areas:



•                     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.






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