Egdon Resources Plc (AIM : EDR), the UK-based energy company primarily focused on the hydrocarbon-producing basins of the onshore UK, is pleased to announce its Interim Results for the six month period ended 31 January 2006.

The Company’s strategy is to maintain a geographical focus on the UK and develop an exploration and production business through “drill-bit” success, leading to growth in reserves, production and cash flow.  Egdon currently has exploration interests in the United Kingdom Continental Shelf (“UKCS”) and France. The Company is also developing a gas storage business in the south of England.

Operational Highlights

• Confirmation of gas at Kirkleatham-4 and Westerdale-1.
• Enhanced licence position with award of block 15/7 in 23rd Licensing Round.
• Currently hold 20 licences in UK and France.
• Waddock Cross-3 appraisal well drilled and tested.
• Avington-3 well drilled and preparing to test.
• Significant progress made in developing plans for Portland Gas Storage  Project.
• Portland-1 confirmatory well preparing to core salt sequence at end of March 2006.
• 2D Seismic acquired in November 2005 over Grenade prospect in SW France.

 Financial Highlights

• Loss for period of £238,000 (2005: £296,000)
• Institutional placing of 5,555,000 ordinary shares completed in December 2005 at a price of 90p per share, resulting in net proceeds of £4.8 million
• Debt free with a strong cash position (Net funds as at 31 January 2006: £6.3 million; 31 January 2005: £3.7 million)

Commenting on the results, Philip Stephens, Chairman of Egdon, said:

“The Company is experiencing operational success in all areas of its business, and we are particularly pleased with the confirmation of gas in two of our wells. The Portland Gas Storage Project is progressing, with a well currently being drilled to confirm the viability of creating salt caverns for storing gas.

2006 will be another active year, with wells planned in all of our key areas, including at Grenade in France.  We look forward to adding further value for our shareholders over the coming year.”