Portland Operations Update

20 Apr 2006 10:59

Egdon Resources PLC20 April 2006 20 April 2006 For immediate release EGDON RESOURCES PLC Portland-1 Operations Update 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 ('the Company'), the wholly owned subsidiary of EgdonResources Plc, is drilling the Portland-1 borehole on the Isle of Portland,Dorset to confirm that a halite sequence (called 'S7' by the Company), within aTriassic salt sequence ('Saliferous Beds') of the Wessex Basin, is suitable forthe creation of caverns to store natural gas. The top of the Saliferous Beds was encountered at a depth of 2139 metres (130metres deep to prognosis). Following the setting of a 7 inch steel liner in thehole, coring of the sequence, using a wireline retrievable core barrel,commenced on 14 April 2006 at a depth of 2149 metres. At 07:00a.m. today core number 15 was recovered from a depth of 2190 metreswithin the interbedded salt and claystone sequence overlying the S7 interval ofinterest. The S7 sequence in nearby boreholes, drilled during the 1980's and1990's for hydrocarbon exploration in the underlying Sherwood Sandstone, is ahalite dominated interval. The S7 is expected to be approximately 180 metresthick at Portland-1. The rate of progress of the coring operations has been slower than anticipatedand it is now estimated that the coring will take a further 30 days to complete.Assuming the S7 interval is encountered as anticipated, sections of the corewill then be taken to laboratories in Germany to enable the Company, to confirmthrough a series tests, the suitability of the Saliferous Beds on the Isle ofPortland for the development of a gas storage facility. Work on the Environmental Impact Assessment for the project is progressing welland any proposed development of the Portland site would be subject to planningand consents approvals. For further information please contact: Egdon resources PlcAndrew Hindle, Joint Managing Director 01256 702292Mark Abbott, Joint Managing Director Buchanan CommunicationsEric Burns 01943 883 990Ben Willey 020 7466 5000 Company Background Egdon is an established, UK-based energy company primarily focused on thehydrocarbon-producing basins of the onshore UK. Egdon also has explorationinterests in the offshore UK and France. Egdon's shares are traded on the AIMmarket. The Company is developing two major 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 prospective 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