Egdon Resources Provides Shale-gas Resource Assessment by RPS Energy for Onshore UK Licenses

Egdon Resources has provided the results of an independent evaluation by RPS Energy (RPS) of the potential shale-gas resources in the Company's onshore U.K. East Midland licenses PEDL139 and PEDL140 s where the Company holds 13.5% interests.

RPS has reviewed the available data in the Licenses and made an assessment of potential gas volumes and geological chance of success based on analogous shale-gas plays in the USA. The Licenses are located in Lincolnshire and cover an area which is underlain by the Gainsborough Trough, a geological basin which contains a 125 meter thick sequence of the Carboniferous age Pendleian Shale at a depth of over 2000 meters. The Pendleian Shale is the approximate age equivalent of parts of the Bowland Shale which is the principal shale-gas reservoir target under evaluation in the Bowland Basin of North West England.

RPS estimates the mean net Egdon total gas in place (GIIP) as 1.76 trillion cubic feet of gas ("tcf") within the Licenses. A review of the surface and sub-surface access constraints in the area has resulted in an estimated mean net Egdon Accessible GIIP of 1.22 tcf. The net Egdon mean Prospective Resources1 are estimated as 0.19 tcf based on recovery rates in analogous U.S. plays. RPS estimates the geological chance of success to be 24%.