28th Jan 2008 07:01
Leed Petroleum PLC28 January 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 theMain Pass block 115 lease in the Central Gulf of Mexico Minerals ManagementService ("MMS") Lease Sale 205. As announced on 5 October 2007, Leed was confirmed as the highest bidder on theShip Shoal 201 and Main Pass 115 blocks. On 25 January 2008 the MMS confirmedthat Leed's bid of US$0.23m for the Main Pass 115 block had been accepted. TheCompany is confident that the MMS will also accept its highest bid on Ship Shoalblock 201 in the near future. The Main Pass 115 block is located 83 miles southeast of New Orleans, Louisianain 50 feet of water. Leed has identified several relatively low risk, highimpact opportunities on the block, and the Company intends to add these projectsto its drilling schedule as soon as is feasible. The lease on Main Pass block 115 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 COMMENTS(All are U.S.) WI / NRI DATE (km2) (%) Main Pass Leed Petroleum Exploration To be 20.21 New lease acquired LLC determined in MMS Central GulfBlock 115 100 / 83.33 Lease Sale # 205 (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 Main Pass 115 lease is an excellent fit for the company's growth strategyas it is located in an area where we have a wealth of experience. Drilling plansfor Main Pass 115 are at an advanced stage and we will integrate the projectinto our operations schedule as soon as planning and permitting constraintsallow. We are optimistic that our bid for the Ship Shoal 201 block will soon beaccepted, and we can add this to our rapidly growing portfolio of explorationand development opportunities." 28 January 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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