EDR.L Regulatory News (EDR)

4 Sep 2006 07:00

Egdon Resources PLC04 September 2006 4 September 2006For immediate release EGDON RESOURCES PLC Technical Feasibility Confirmed For Portland Gas Storage Project Egdon Resources Plc (AIM : EDR), the onshore UK focused energy company, todayprovides an update on its gas storage project on the Isle of Portland in Dorset. Portland Gas Limited ('Portland Gas'), a wholly owned subsidiary of EgdonResources Plc, is pleased to report that it has received a report from DEEP.Underground Engineering GmbH of Germany confirming the technical feasibility ofthe proposed gas storage facility in Dorset. Subject to obtaining planningapproval for the project, Portland Gas will commence construction as soon aspossible. Following analysis of the data acquired from the Portland-1 well, whichcompleted drilling operations on 21 June 2006, Portland Gas can now confirm thatit proposes to develop a facility comprising 14 caverns within the TriassicSaliferous Beds capable of storing 1000 million cubic metres (35 billion cubicfeet) of natural gas. The facility is being designed to enable the injection or withdrawal of gas at arate of 20 million cubic metres per day (0.7 billion cubic feet per day). Atthese rates the entire storage volume could be filled or emptied in 50 days. Portland Gas is now finalising the environmental statement for the project andthe planning and pipeline construction authorisation applications are beingprepared for submission in the fourth quarter of 2006. Assuming planning approval for the project is forthcoming in the first half of2007, it is anticipated that an initial storage capacity would be available tomake 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 MRothschild & Sons have been appointed as financial advisors with specificresponsibilities for Portland Gas. Commenting on the project's progress, Andrew Hindle, Joint Managing Director ofEgdon, said: "We are delighted to be able to confirm the feasibility of a gas storage projecton the Isle of Portland. The proposed facility would make a significantcontribution to the storage needs and security of gas supply for the UnitedKingdom, with the capability when fully developed to provide up to 5% of thenational gas demand on a winter's day. The appointment of Rothschilds to assist with the financing of the project andsecuring storage agreements with customers is an important element of our plansto ensure that construction of the facility can commence immediately upon agrant of planning approval." For further information please contact: Egdon resources PlcAndrew Hindle, Joint Managing Director 01256 702 292Mark Abbott, Joint Managing Director Buchanan CommunicationsEric Burns 01943 883 990Ben Willey 020 7466 5000 Seymour PierceJonathan Wright 020 7107 8000 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 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, theinformation contained in this announcement has been reviewed and signed off bythe Joint Managing Director of Egdon Resources Dr Andrew Hindle, a CharteredGeologist with over 22 years experience. This information is provided by RNS The company news service from the London Stock Exchange