Egdon and Penspen Sign Project Management Deal

Egdon Resources Plc, the onshore UK focused energy company, said that Portland Gas Limited, its wholly owned subsidiary, has entered into a project management contract with Penspen Limited.

Effective from 1st January 2007, Penspen's responsibilities will include management of Front End Engineering Design ('FEED') leading to tendering contractors for the Engineering, Procurement and Construction ('EPC') of the proposed gas storage project on the Isle of Portland, Dorset.

Portland Gas is currently undertaking an extended period of consultation with the County Council, District and Parish Councils and other stakeholders in the project prior to finalising the Environmental Statement ('ES'). Once the ES is completed it will accompany planning submissions for the project elements to Dorset County Council and Department of Trade and Industry (the latter for the pipelines) in the first quarter of 2007.

While the ES is being finalized, Penspen will manage the design and site investigation work to enable the EPC contracts to be tendered and awarded so that construction can commence in the fourth quarter of 2007, subject to obtaining planning permission for the project.

Commenting on the appointment of Penspen, Andrew Hindle, Managing Director of Portland Gas, said:

"With their headquarters in Richmond, Surrey, Penspen operates from 15 offices around the world and has been a key member of the team since 2005 providing the planning design for the 37 kilometer pipeline to connect the Isle of Portland to the National Grid.

"The management team will also include representatives from other organisations who have been instrumental in developing the project design for the planning application, such as DEEP. Underground Engineering GmbH of Germany. The Project manager will be Paul Trundle MSc, CEng, MIMechE, MIGasE who has 25 years experience, and together with his team, has extensive experience managing EPC contracts for the development of significant infrastructure projects, both in the UK and Internationally."