Result of Grenade – 3 Exploration Well

13 February 2008

Egdon Resources Plc (AIM:EDR) the onshore focused energy company today provides an update on the results of the Grenade-3 exploration well drilled in the St Laurent Permit of SW France here the Company holds a 33.423% operated interest.

The Grenade-3 well spudded on 10 January 2008 and reached a total depth of 2310 metres on 10 February. The target “Vraconian” limestone interval was penetrated 21m up-dip of the Grenade-1 discovery well. However, coring and logging have indicated that the target interval had no effective porosity and as such was not hydrocarbon bearing. The Grenade-3 well has therefore been suspended whilst detailed analysis is undertaken of the core data and the results incorporated into the field model. The option has been retained to target other areas of the Grenade prospect via a sidetrack from the Grenade-3 well.
The Grenade-3 well was drilled as a 1.6 kilometre step-out to Grenade-1, drilled by Elf in 1975 which found a 97m column of 10 degree API oil. The Grenade heavy oil accumulation is mapped as a three-way up-dip pinch-out of the reservoir on a low energy carbonate platform. Grenade-3 has defined the eastern limit of reservoir development within the structure although potential still exists to the west and south around the Grenade-1 well and also northwards towards the Maurrin-1 well.

Commenting on the well Egdon’s Managing Director Mark Abbott said:

“The lack of reservoir development in the Grenade-3 well is disappointing but has defined the eastern limit of the Grenade stratigraphic trap. We will now incorporate the results of this well into our geological and commercial models prior to determining any future work programme. Egdon remain committed to exploration in France and will be focusing on understanding the implications of this well and also progressing our evaluation of the multi-TCF potential Audignon Anticline gas prospect also within the St Laurent Permit.”