Exploration - Positioning the Company for future growth

Successful exploration is a significant value creator. Egdon has made good progress in enhancing the breadth and quality of exploration opportunities within its portfolio through ongoing technical evaluation and the award of two new licences in France. A number of these projects are highlighted below.

UK
Winfrith and Wessex Exploration (PL090, PEDL237 – 45% operated)
Significant exploration potential has been identified within the Group’s Dorset licences. The main play is the Sherwood Sandstone which is productive at the giant Wytch Farm oil field. A planning application is due for submission shortly for the Winfrith Prospect in PL090, a faulted anticline with Net Egdon best estimate prospective resource potential of 1.64 MMstb. Elsewhere in the basin Egdon have mapped net Egdon best estimate prospective resource potential of 31.5 MMstb within PEDL237, in the Sherwood Sandstone and Bridport Sandstone reservoirs.

Holmwood (PEDL143 – 38.4% non operated)
The Holmwood Prospect, located in Surrey, is a robust structural trap located between known gas and oil accumulations. A planning application for an exploration well is currently being considered by Surrey County Council. A well is planned for 2010 conditional upon
planning. Net Egdon best estimate prospective resources are estimated at 16.6 Bscf.

Goudhurst (PEDL144 – 96% operated)
The Goudhurst Prospect, in Kent, is a large low-relief anticline with multiple reservoir targets. The prospect has been confirmed on reprocessed seismic data and a suitable well site will now be sought. Subject to planning a well would be drilled in 2010. Goudhurst has net Egdon best estimate prospective resources of 21 MMstb.

North Somercotes (PEDL005(Remainder) – 75% operated)
The North Somercotes Prospect, on the Lincolnshire coast, is a robust structure defined on 3D seismic data and located to the north of the Saltfleetby gas field. A suitable site is being sought prior to submission of planning. Net Egdon best estimate prospective resources are estimated at 10 Bscf.

North Kelsey (PEDL241 – 50% operated)
The North Kelsey Prospect is a robust structural trap defined on 3D seismic data. Reprocessing of this seismic data is currently underway. Egdon have mapped net best estimate prospective resources of 3.1 MMstb.

Wymeswold (PEDL201 – 50% operated)
The Wymeswold Prospect is a structural trap located immediately to the east of and analogous to the Rempstone oil field. Egdon have mapped net best estimate prospective resources of 0.6 MMstb.

Burton Agnes (PEDL071 – 25% operated)
A prospect has been identified up-dip of the Burton Agnes-1 exploration well drilled in 2008. The Burton Agnes-1 well was suspended to provide the option to sidetrack to this more elevated part of the structure should the ongoing technical evaluation warrant
this. A decision will be made during 2010. The geothermal energy potential of the well will also be assessed.

France
Audignon Prospect (St Laurent – 33.334% operated)
The Audignon Prospect is a very large Triassic sandstone sub-salt gas prospect defined on reprocessed 2D seismic data. Net Egdon best-estimate prospective resources are 1 TCF. Egdon will continue to address the technical risks on the project whilst looking to bring in a farm-in partner for this deep, high potential but higher risk Companymaking prospect.

Grand Cret (Gex – 40% operated)
Grand Cret is a large surface anticline with identifi ed closure at Triassic level and is the initial exploration focus of the Gex Permit. Preliminary evaluation has indicated the structure has potential for over 1 TCF of gas or 166 MMstb (Net Egdon prospective resource of 400 Bscf or 66 MMstb). Geological, geochemical and seismic studies are ongoing to further define this and other similar prospects in the permit.