17th Jun 2008 15:42
Leed Petroleum PLC
("Leed" or the "Company")
Award of Lease
Leed Petroleum PLC, the oil and gas exploration and production company focused on the Gulf of Mexico, today announces that the Company has been awarded the West Cameron block 106 lease in the Central Gulf of Mexico Minerals Management Service ("MMS") Lease Sale 206.
As announced on 19 March 2008, the MMS has confirmed that Leed was the highest bidder on two blocks, South Marsh Island Block 8 and West Cameron Block 106 in the Central Gulf of Mexico Lease Sale 206. On 13 June 2008, the MMS confirmed that Leed's bid of US$1,288,888 for the West Cameron 106 block had been accepted. The West Cameron block is located approximately 160 miles southwest of New Orleans, Louisiana in 40 feet of water. Leed has identified drilling opportunities on the block, and the Company intends to add these projects to its drilling schedule as soon as feasible. The Company is confident that the MMS will also accept its bid on South Marsh Island Block 8.
The West Cameron block 106 lease will be held for an initial five year "primary" term during which the Company will have the right to explore and produce hydrocarbons. Once production is established from the lease, the lease will be held by production until 180 days after the cessation of production.
In accordance with the Company's pre-existing scouting agreement with Byron Energy Pty. Ltd. ("Byron"), Byron will have the right to acquire up to 25% of the Company's working interest in the block (the "Option Right").
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ASSET (All are U.S.) |
OPERATOR |
INTEREST1 WI / NRI (%) |
STATUS |
LEASE EXPIRY DATE |
LEASE AREA (km2) |
COMMENTS |
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West Cameron Block 106 |
Leed Petroleum LLC |
100 / 81.25 |
Exploration |
To be determined |
20.23 |
New lease acquired in MMS Central Gulf Lease Sale # 206 |
1 Interest - Working interests (WI) are shown and are subject to various royalty payments. Net revenue interests (NRI) include any and all royalty payments. Working and Net Revenue Interests in the above property is subject to the Option Right.
Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented:
"The West Cameron 106 block is complimentary to our existing portfolio and is an excellent fit for our growth strategy. The lease ranked as one of the most promising of all the blocks reviewed during the Company's selection process in a very competitive Lease Sale. We are excited that our bid has been accepted and plans to integrate drilling at West Cameron 106 into our operations schedule are already underway. Our portfolio of exploration and development opportunities has grown significantly through lease sale opportunities and we look forward to continuing that trend."
17 June 2008
For further information:
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Leed Petroleum PLC |
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Howard Wilson, President and Chief Executive |
+1 337 314 0700 |
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James Slatten, Chief Operating Officer |
+1 337 314 0700 |
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Matrix Corporate Capital LLP |
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Alastair Stratton |
+44 20 3206 7204 |
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Tim Graham |
+44 20 3206 7206 |
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Pelham Public Relations |
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Alisdair Haythornthwaite |
+44 20 7743 6676 |
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Evgeniy Chuikov |
+44 20 3008 5506 |
NOTES TO EDITORS
Operations
Leed Petroleum PLC is an AIM quoted independent oil and gas exploration and production company. The Company's operations are concentrated in the Gulf of Mexico region where Leed has established a significant portfolio of producing and development assets. The Company has interests in 16 offshore fields and 1 onshore field in the region.
Leed's strategy is to grow the Company's portfolio through organic development of its existing assets and to utilise its regional expertise to identify and purchase value adding assets.
Related Shares:
Leed Resources