EDR.L Regulatory News (EDR)

21 Dec 2007 12:00

Egdon Resources PLC21 December 2007 For Immediate Release 21 December 2007 EGDON RESOURCES PLC ("EGDON" or "the Company") Results of Burton Agnes-1 Exploration Well Egdon Resources Plc (AIM:EDR) the onshore UK focused energy company todayprovides an update on results from the Burton Agnes-1 Exploration well on theEgdon operated licence PEDL071 located in East Yorkshire where the Company holdsa 25% interest. The Burton Agnes-1 well reached a TD of 2290 metres measured depth, 1982 m subdatum vertical depth on 17 December 2007. Gas shows were observed in the LemanSandstone and fractures within carbonates of the overlying Zechstein sequence.Petrophysical analysis of the wireline log data has indicated that the primaryreservoir target, the Leman Sandstone, was water wet. The Leman Sandstone waspenetrated deep to prognosis due to a thicker than predicted Zechstein sectionin the well which was drilled on the north eastern margin of the prospect. The gas zones within the Zechstein were not considered worth testing. As suchthe well is currently being suspended whilst the results of the well areincorporated into the structural and geological model for the FraisthorpeProspect to determine if a structurally elevated target can be reached from thecurrent well site. Egdon's costs for the well have been carried. Commenting on the results of the well, Mark Abbott, Joint Managing Director ofEgdon said "Whilst we are disappointed that the primary target was water bearing this thefirst well on the Fraisthorpe Prospect has confirmed the presence of thick, goodquality Leman sandstone reservoir and a viable petroleum system. The well hasshown the area to be more complex than our pre-drill view and we remainencouraged by the potential for the area. As such we have made the decision tosuspend the well to provide the option to sidetrack to a more elevated part ofthe structure once our post-well evaluation is completed." For further information please contact: Egdon Resources Plc Mark Abbott, Joint Managing Director 01256 702 292 Andrew Hindle, Joint Managing Director 0208 332 1200 Buchanan Communications Ben Willey 020 7466 5000 Nicholas Melson Seymour Pierce Jonathan Wright 020 7107 8000 Notes to Editors: The co-venturers in the PEDL 071 licence are as follows: +------------------------------------+------------+|Company | Interest|+------------------------------------+------------+|Egdon Resources Plc (Operator) | 25.0%|+------------------------------------+------------+|Sterling Resources (UK) Limited | 20.0%|+------------------------------------+------------+|Gas Plus E&P UK Limited | 17.5%|+------------------------------------+------------+|Gas Plus O&G UK Limited | 17.5%|+------------------------------------+------------+|Granby Enterprises Limited | 10.0%|+------------------------------------+------------+|Montrose Industries Limited | 10.0%|+------------------------------------+------------+| | 100.0%|+------------------------------------+------------+ Company Background Egdon is an established, UK-based energy company primarily focused on theonshore 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 explorationand production business which has a portfolio of twenty four explorationlicences, and a gas storage business initially focused on the development of amajor salt cavern gas storage facility on Portland, Dorset. Egdon plans to demerge the two businesses in January 2008. In accordance with AIM rules - guidance for mining, oil and gas companies, theinformation contained in this announcement has been reviewed and signed off bythe Joint Managing Director of Egdon Resources Mark Abbott, a Geoscientist withover 21 years experience. This information is provided by RNS The company news service from the London Stock Exchange