20 April 2006 - Portland-1 Operational Update

Egdon Resources Plc (AIM : EDR) the onshore UK focused energy company today provides an update on its gas storage project on the Isle of Portland in Dorset.

Portland Gas Limited (‘the Company’), the wholly owned subsidiary of Egdon Resources 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 a Triassic salt sequence (‘Saliferous Beds’) of the Wessex Basin, is suitable for the creation of caverns to store natural gas.

The top of the Saliferous Beds was encountered at a depth of 2139 metres (130 metres deep to prognosis). Following the setting of a 7 inch steel liner in the hole, 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 metres within the interbedded salt and claystone sequence overlying the S7 interval of interest. The S7 sequence in nearby boreholes, drilled during the 1980’s and 1990’s for hydrocarbon exploration in the underlying Sherwood Sandstone, is a halite dominated interval. The S7 is expected to be approximately 180 metres thick at Portland-1.

The rate of progress of the coring operations has been slower than anticipated and 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 core will then be taken to laboratories in Germany to enable the Company, to confirm through a series of tests, the suitability of the Saliferous Beds on the Isle of Portland for the development of a gas storage facility.

Work on the Environmental Impact Assessment for the project is progressing well and any proposed development of the Portland site would be subject to planning and consents approvals.