Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

Award of Lease

1st Jul 2008 07:00

RNS Number : 9453X

Leed Petroleum PLC

01 July 2008

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 South Marsh Island Block 8 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 27 June 2008, the MMS confirmed that Leed’s bid of $2,111,111 for South Marsh Island Block 8 had been accepted. The South Marsh Island block is located approximately 110 miles southwest of New Orleans, Louisiana in 60 feet of water. As soon as practicable, Leed intends to add the South Marsh Island Block 8 drilling opportunities identified by Leed’s technical team to the Company’s drilling schedule.

The South Marsh Island Block 8 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").

ASSET

(All are U.S.)

OPERATOR

INTEREST1

WI / NRI

(%)

STATUS

LEASE EXPIRY DATE

LEASE AREA (km2)

COMMENTS

South Marsh Island Block 8

Leed Petroleum LLC

100 / 81.25

Exploration

To be determined

12.73

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:

"South Marsh Island Block 8 was our top ranked prospect at this year's lease sale and we are very excited that our bid has been accepted by the MMS. Our technical team has identified several solid exploratory and low risk re-development opportunities on this lease. We are actively planning wells that will test these strong prospects.

The award of the South Marsh Island Block 8 brings another high quality asset into our prospect inventory. This lease has the potential to become one of our key assets as its development unfolds and we will be working diligently to incorporate it into our drilling schedule".

1 July 2008

For further information:

Leed Petroleum PLC
Howard Wilson, President and Chief Executive	+1 337 314 0700
James Slatten, Chief Operating Officer	+1 337 314 0700

Matrix Corporate Capital LLP
Alastair Stratton	+44 20 3206 7204
Tim Graham	+44 20 3206 7206

Pelham Public Relations
Alisdair Haythornthwaite	+44 20 7743 6676
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 17 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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCFKKKBABKDAAN

Related Shares:

FTSE 100 Latest

Value8,275.66

Change0.00