Portland Gas Storage Update

Egdon Resources PLC
04 September 2006


4 September 2006
For immediate release

                              EGDON RESOURCES PLC

        Technical Feasibility Confirmed For Portland Gas Storage Project


Egdon Resources Plc (AIM : EDR), the onshore UK focused energy company, today
provides an update on its gas storage project on the Isle of Portland in Dorset.

Portland Gas Limited ('Portland Gas'), a wholly owned subsidiary of Egdon
Resources Plc, is pleased to report that it has received a report from DEEP.
Underground Engineering GmbH of Germany confirming the technical feasibility of
the proposed gas storage facility in Dorset. Subject to obtaining planning
approval for the project, Portland Gas will commence construction as soon as
possible.

Following analysis of the data acquired from the Portland-1 well, which
completed drilling operations on 21 June 2006, Portland Gas can now confirm that
it proposes to develop a facility comprising 14 caverns within the Triassic
Saliferous Beds capable of storing 1000 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.

Portland Gas is now finalising the environmental statement for the project and
the planning and pipeline construction authorisation applications are being
prepared for submission in the fourth quarter of 2006.

Assuming planning approval for the project is forthcoming in the first half of
2007, it is anticipated that an initial storage capacity would be available to
make gas deliveries to the national transmission system in the winter of 2010,
with full capacity being available during 2013.

The Directors of Egdon Resources Plc are also pleased to announce that N M
Rothschild & Sons have been appointed as financial advisors with specific
responsibilities for Portland Gas.

Commenting on the project's progress, Andrew Hindle, Joint Managing Director of
Egdon, said:

'We are delighted to be able to confirm the feasibility of a gas storage project
on the Isle of Portland.  The proposed facility would make a significant
contribution to the storage needs and security of gas supply for the United
Kingdom, with the capability when fully developed to provide up to 5% of the
national gas demand on a winter's day.

The appointment of Rothschilds to assist with the financing of the project and
securing storage agreements with customers is an important element of our plans
to ensure that construction of the facility can commence immediately upon a
grant of planning approval.'


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 business areas:
     
•    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 beneath the Isle of Portland, Dorset.

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 Dr Andrew Hindle, a Chartered
Geologist with over 22 years experience.


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