Contract Signed

27 Dec 2006 07:01

Egdon Resources PLC27 December 2006 27 December 2006 For immediate release EGDON RESOURCES PLC Project Management Contract signed for Portland Project Egdon Resources Plc (AIM : EDR), the onshore UK focused energy company, todayannounces that Portland Gas Limited ('Portland Gas'), its wholly ownedsubsidiary, has entered into a project management contract with Penspen Limited('Penspen'). Effective from 1st January 2007, Penspen's responsibilities will includemanagement of Front End Engineering Design ('FEED') leading to tenderingcontractors for the Engineering, Procurement and Construction ('EPC') of theproposed gas storage project on the Isle of Portland, Dorset. Portland Gas is currently undertaking an extended period of consultation withthe County Council, District and Parish Councils and other stakeholders in theproject prior to finalising the Environmental Statement ('ES'). Once the ES iscompleted it will accompany planning submissions for the project elements toDorset County Council and Department of Trade and Industry (the latter for thepipelines) in the first quarter of 2007. While the ES is being finalised, Penspen will manage the design and siteinvestigation work to enable the EPC contracts to be tendered and awarded sothat construction can commence in the fourth quarter of 2007, subject toobtaining planning permission for the project. Commenting on the appointment of Penspen, Andrew Hindle, Managing Director ofPortland Gas, said: "With their headquarters in Richmond, Surrey, Penspen operates from 15 officesaround the world and has been a key member of the team since 2005 providing theplanning design for the 37 kilometre pipeline to connect the Isle of Portland tothe National Grid. The management team will also include representatives from other organisationswho have been instrumental in developing the project design for the planningapplication, such as DEEP. Underground Engineering GmbH of Germany. The Projectmanager will be Paul Trundle MSc, CEng, MIMechE, MIGasE who has 25 yearsexperience, and together with his team, has extensive experience managing EPCcontracts for the development of significant infrastructure projects, both inthe UK and Internationally." 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 Watershed PR (Dorset) Sara Hudston 01308 485693 Seymour Pierce Jonathan 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 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. Portland Gas Limited, a wholly owned subsidiary of EgdonResources Plc, proposes to develop a facility comprising 14 caverns within theTriassic Saliferous Beds capable of storing 1000 million cubic metres (35billion cubic feet) of natural gas. The facility is being designed to enable theinjection or withdrawal of gas at a rate of 20 million cubic metres per day (0.7billion cubic feet per day). At these rates the entire storage volume could befilled or emptied in 50 days and have the capability when fully developed toprovide up to 5% of the national gas demand on a winter's day. Egdon announcedin October 2006 that it intended to demerge the gas storage business from theoil and gas exploration business during 2007. 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