8th Feb 2008 07:00
Leed Petroleum PLC08 February 2008 Leed Petroleum PLC ("Leed" or the "Company") Award of Lease Leed Petroleum PLC, the oil and gas exploration and production company focusedon the Gulf of Mexico, today announces that the Company has been awarded theShip Shoal block 201 lease in the Central Gulf of Mexico Minerals ManagementService ("MMS") Lease Sale 205. On 4 February 2008, the MMS confirmed that Leed's bid of $1.578 million for theShip Shoal 201 block had been accepted. This is in addition to acceptance ofthe Company's $0.23 million bid for the Main Pass 115 block announced on 28January 2008. The Ship Shoal block is located approximately 125 miles southwest of NewOrleans, Louisiana in 102 feet of water. Leed has identified several materialopportunities on the block, and the Company intends to add these projects to itsdrilling schedule as soon as is feasible. The lease on Ship Shoal block 201 will be held for an initial five year "primary" term during which the Company will have the right to explore and producehydrocarbons. Once production is established from the lease, the lease will beheld by production until 180 days after the cessation of production. In accordance with the Company's pre-existing scouting agreement with ByronEnergy Pty. Ltd. ("Byron"), Byron will have the right to acquire up to 25% ofthe Company's working interest in the block (the "Option Right"). ASSET OPERATOR INTEREST 1 STATUS LEASE EXPIRY LEASE AREA (All are U.S.) WI / NRI DATE (km2) COMMENTS (%) Ship Shoal Leed Petroleum Exploration To be 20.23 New lease acquired LLC determined in MMS Central GulfBlock 201 100 / 83.33 Lease Sale # 205 1 Interest - Working interests (WI) are shown and are subject to various royaltypayments. Net revenue interests (NRI) include any and all royalty payments.Working and Net Revenue Interests in the above property is subject to the OptionRight. Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented: "The addition of the Ship Shoal 201 block to our portfolio is a good result.The lease ranked the highest of the blocks reviewed during the Company's leaseselection process, and we are very excited that our bid has been accepted. Drilling plans for Ship Shoal 201 are well advanced and we will integrate theproject into our operations schedule as soon as practical. Our portfolio ofexploration and development opportunities has grown significantly through leasesale opportunities, and we will continue to assess these in the future." 8 February 2008 For further information: Leed Petroleum PLCHoward Wilson, President and Chief Executive +1 337 314 0700James Slatten, Chief Operating Officer +1 337 314 0700 Matrix Corporate Capital LLPAlastair Stratton +44 20 7925 3300Tim Graham +44 20 7925 7852 Pelham Public RelationsAlisdair Haythornthwaite +44 20 7743 6676Evgeniy Chuikov +44 20 3008 5506 NOTES TO EDITORS Leed Petroleum PLC is an AIM listed independent oil and gas exploration andproduction company. The Company's operations are concentrated in the Gulf ofMexico region where Leed has established a significant portfolio of producingand development assets. The Company has interests in 16 offshore and 1 onshorefields in the region. Leed's strategy is to grow the Company's portfolio through organic developmentof its existing assets and utilise its regional expertise in identifying andpurchasing value adding assets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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