EDR.L Regulatory News (EDR)

29 Mar 2007 10:06

Egdon Resources PLC29 March 2007 29 March 2007 For Immediate Release EGDON RESOURCES PLC Submission of Planning and Pipeline Authorisation Applications for the Portland gas storage project Egdon Resources Plc ("Egdon"), the onshore UK focused energy company, is pleasedto announce that its wholly-owned subsidiary, Portland Gas Storage Limited ('Portland Gas') has submitted today a series of applications to seek permissionto build a natural gas storage facility on the Isle of Portland and for theother infrastructure necessary to take and return gas to National Grid'sTransmission System. Portland Gas has submitted a total of seven applications; a pipelineconstruction authorisation application submitted to the Department of Trade andIndustry and a further six planning applications submitted to Dorset CountyCouncil. The six planning applications comprise: • The salt cavern gas storage facility at Upper Osprey, Isle of Portland. • A brine wellsite at Stafford Farm, near West Stafford, adjacent to the gas pipeline, to store the brine used to compensate gas injection and withdrawal in the caverns. A separate brine pipeline will run to Portland from the site. • An above ground installation at Mappowder, the connection to the National Grid, together with an adjacent temporary pipe storage area to be used during pipeline construction. • A block valve station on the gas pipeline near Osmington. • Two further temporary pipe storage areas and contractors' temporary facilities close to the proposed pipeline route. Portland Gas plans to create a sub-surface natural gas storage facility beneaththe north east corner of the Isle of Portland. The proposed development wouldinvolve creating 14 storage caverns, at a depth of 2,400 metres, in a layer ofthick rock salt. The facility is expected to be capable of storing 1,000million cubic metres (35 billion cubic feet) of natural gas (equivalent to 1% ofthe UK's total annual demand) and deliver 20 million cubic metres of gas per dayfrom storage (equivalent to 5% of typical UK winter demand). Assuming construction commences in the fourth quarter of 2007, the pipelinewould be laid in 2009, with first gas stored for the winter of 2010 oncompletion of the surface facilities. All the storage space would be availablefor the winter of 2013. Commenting on the submission, Andrew Hindle, Managing Director of Portland Gas,said 'We are delighted to have completed the Environmental Impact Assessment forthe project and drawn up a comprehensive Environmental Statement whichaccompanies the planning applications. It follows a significant two year effortby a large dedicated team of environmental consultants. The environmental teamhas worked closely with the technical team and both have held regular andinvaluable informal meetings with the planning authorities and key Governmentagencies. This has enabled the project design to be steered towards the mostenvironmentally acceptable solution.' 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 Jeremy Porter Notes to Editors: 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 distinctive businesses: • An oil and gas exploration and production business whichhas a portfolio of twenty exploration licences containing identified oil and gasprospects ranging from discoveries under appraisal through to higher risk buthigher reward "wild-cat" exploration prospects. • A gas storage business initially focused on thedevelopment of a major salt cavern gas storage facility beneath the Isle ofPortland, Dorset. In 2006, Egdon announced plans to demerge the two businesses during 2007. Portland Gas Storage Limited Portland Gas Storage Limited will own and operate the Portland gas storagefacility. It is one of a group of companies owned by Portland Gas Limited, awholly owned subsidiary of Egdon Resources Plc. The Portland Gas group ofcompanies, initially set up to develop the Portland project, will seek to make asignificant contribution to the UK's energy infrastructure and acquire anddevelop a portfolio of gas storage assets in the UK and internationally. A description of the Portland gas storage project can be found at the newPortland Gas website www.portland-gas.com, from where a copy of theEnvironmental Statement Non-Technical Summary can be downloaded. This information is provided by RNS The company news service from the London Stock Exchange