5th Jun 2008 07:00
Leed Petroleum PLC
("Leed" or the "Company")
Drilling Update
Leed Petroleum PLC, the oil and gas exploration and production company focused on the Gulf of Mexico, announces an update on the drilling activity at the Eugene Island A-7 well.
The Eugene Island A-7 well was spudded on 17 April 2008 and has reached its second casing setting point at a measured depth of 14,815 ft. Electric line logs have confirmed that the Company encountered two additional pay sands, each containing 23 feet of true vertical thickness pay, in this section of the wellbore. To date, three commercial sands containing a total of 80 feet of true vertical thickness pay have been discovered in the A-7 well. None of these three zones were primary objectives in the well.
The Company is planning to run casing to the current depth, and drill ahead to penetrate the primary objectives. Drilling remains on schedule to reach total depth in the third quarter of 2008.
Meanwhile, production at the Eugene Island A-6 well has remained stable since the initial flow testing, announced on 10 April 2008. The Company is pleased to confirm that since being placed on production, the average restricted flow rate has been stable at 2,095 BOEPD.
The Eugene Island Blocks are located 50 miles offshore, south of Morgan City, Louisiana in the Gulf of Mexico in approximately 80 feet of water. Leed's management has built an inventory of development projects and exploration targets across the Eugene Island Block 183/184 Field.
Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented:
"While we remain confident that we will find additional hydrocarbon deposits in the primary objectives in the deeper sections of the A-7 well, the presence of hydrocarbons in these three zones will make the A-7 drilling project a commercial success.
These discoveries coupled with the outstanding and stable performance of the A-6 well since the initial flow test announced on 10 April 2008 are great news for our company. We are very excited about the future as we await the results of the more promising deeper objectives in the A-7 well and plan for the development of additional reserves identified by this drilling program.
I am very pleased with our technical team's demonstrated ability to consistently make substantial increases to the Company's reserve base, production rate and operating income".
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 7925 3300 |
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Tim Graham |
+44 20 7925 7852 |
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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
Review by a qualified person
The information contained in this announcement has been reviewed and approved by Chris Thompson, Manager of Business Development at the Company, BSC GradDip, who is a reservoir engineer (SPE) with over 15 years experience within the sector.
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 one 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.
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