Egdon Commences Production from Kirklington Oil Field

Egdon Resources has commenced production from its Kirklington oil field in PEDL203 located in Nottinghamshire.

Following a period of commissioning and testing, the Kirklington-2 well was returned to continuous pumped production on July 28, 2009. As at August 7, 2009 the well had produced a total of 325 barrels of oil at an average daily rate of 32 bopd. Associated water production over the period was 640 barrels with an average water cut of 66%. This is in line with management's expectations. The Kirklington-2 well has two oil producing intervals; the Sub-Alton Crawshaw and the Chatsworth Grit. The well is currently completed for production from the Chatsworth Grit.

It is intended to continue producing the existing well until later in 2009 when a sidetrack will be drilled to an up-dip area of the Kirklington field to access additional oil reserves from both producing intervals. Planning approval is already in place for this operation.

The Kirklington oil field was originally discovered by BP in 1986. Production from the Sub-Alton Crawshaw reservoir occurred between 1991 and 1998 and from the Chatsworth Grit reservoir from 2003 to 2004. Egdon acquired the current well-site from Star Energy in 2008.

Commenting on the commencement of production, Mark Abbott, Managing Director of Egdon, said, "The commencement of production from the Kirklington-2 well is the first stage in the re-juvenation of the Kirklington oil field. Having gained all authorizations and completed the upgrading of the facilities at the site we look forward to the next phase of development with the drilling of a sidetrack well to access additional reserves and increase daily oil rates and cash flow from the field. In the meantime we welcome the incremental production and revenues. "



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