Operational Update

Leed Petroleum PLC

("Leed" or the "Company")

Operational Update

Success at Ship Shoal 201 A-6 well and Production Update

Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and production company focused on the Gulf of Mexico, today announces an operational update.

Highlights

·; Completion of Ship Shoal 201 A-6 well and commencement of first production. Production initiated on 6 May 2010 at a gross rate of 1,615 boepd (1,295 boepd net)

·; Progress at Sorrento Dome to establish production from the United Lands 14-1 well

·; Awarded Grand Isle 96 in MMS Lease sale 213

·; Estimated net attributable company production for the three months to 31 March 2010 averaged 958 boepd (54% gas) (approximately 2,105 boepd gross)

Ship Shoal 201

The Ship Shoal 201 A-6 well was successfully drilled and completed during the quarter ended 31 March 2010. The Company is pleased to report that the well was placed on production on 6 May 2010 at a gross rate of 1,615 boepd (1,295 boepd net) (83% gas). This has resulted in a material increase in the Company's average daily production rate.

As previously reported, the Ship Shoal 201 A-6 well was drilled from the recently acquired Ship Shoal 202 "A" platform. Drilling and completion operations were finished ahead of schedule and within the $9.8 million budget allocated for the well. In order to bring production online, processing equipment was installed on the Ship Shoal 202 platform and the product sales line was recommissioned. Independent reservoir auditing firm, Collarini Associates of Houston, Texas, attributes net 1P reserves of 1.1 million boe and 2P reserves of 1.3 million boe to the reservoir (84% natural gas). The Company has a 100% working interest and an 80.2% net revenue interest in the well.

Sorrento Dome

The Company has continued to carry out work at Sorrento Dome to enable commencement of production from the United Lands 14-1 well. Production from the United Lands 14-1 well will commence once the installation of the sales gas meter is completed and the non-productive United Lands 11-1 well is converted to a salt water disposal well. As previously reported, this well tested at a stable but restricted gross rate of 217 boepd (160 boepd net) (100% gas). Installation of the gas sales meter has started and is expected to be completed during the quarter ending 30 June 2010. The conversion of the United Lands 11-1 well is expected to be finished before the sales meter is installed.

The next drill-ready target at Sorrento Dome is the United Lands 13-1 sidetrack well. This is a sidetrack of an existing shut-in well and targets proved undeveloped reserves. The Company is currently assessing when this drill-ready project can best be placed into the Company's drilling schedule.

Eugene Island 183/184

During the three months ended 31 March 2010, the Company continued to work hard to overcome well performance issues at Eugene Island. The Company estimates that net attributable production from the Eugene Island field for the quarter ended 31 March 2010 averaged 806 boepd (1,304 boepd gross) (56% gas).

The Eugene Island A-8 well continues to flow at approximately 369 boepd gross from the Mid Tex zone. This zone is expected to deplete shortly, at which time the Company will recomplete the well to the T-1 zone. The Company anticipates a substantial improvement to production flow rates from the A-8 well following the recompletion.

As previously reported the Eugene Island A-6 well plugged with sand and remains shut in. The Company plans to perform low cost remedial work on the well to attempt to re-establish production in conjunction with the A-8 recompletion.

During the quarter ended 31 March 2010, the Eugene Island A-7 well, after over 4 months of steady production, plugged with sand and is currently shut in. The Company is working towards recompleting the well further uphole to access reserves in a shallower horizon. It is expected that this recompletion work will be completed within three weeks.

After installation of the compressor, the production rates from the legacy gas-lifted oil wells at Eugene Island (A-1, A-3, A-4, and A-5 wells) has improved, performing at the targeted aggregate gross rate of 300 to 500 boepd (187 to 375 boepd net) (100% oil).

Grand Isle 96

The Company successfully bid for the Grand Isle 96 block which is adjacent to the Company's Grand Isle 95 and 100 blocks. The Company has identified several drilling prospects on this lease and believes that operational synergies will enhance the economics of the prospects on all three Grand Isle leases. On 13 April 2010, the MMS confirmed acceptance of Leed's bid.

Non-Operated Properties

Production at Main Pass 64 averaged 90 boepd (100% oil) on a net revenue interest basis (469 boepd gross) during the quarter ended 31 March 2010. The third party oil sales line was restored to operation during the period, and production over the first ten days of May averaged 184 boepd (100% oil) on a net revenue interest basis.

Production at the non-operated East Cameron 317 field averaged 63 boepd on a net revenue interest basis (333 boepd gross) during the quarter ended 31 March 2010.

Production

The Company estimates that net attributable production for the quarter ended 31 March 2010 averaged 958 boepd. The lower average daily production for the period was primarily attributable to cessation of production in the previously producing zone of the Eugene Island A-7 well.

Implications arising from BP Deepwater Horizon Incident

The accident at the BP leased Deepwater Horizon Rig in the Gulf of Mexico has had no immediate impact on the Company's current operations. Both of Leed's major producing fields, Eugene Island 183/184 and Ship Shoal 201, are located over 150 miles to the west of the accident site.

On May 6, 2010, U.S. Department of Interior Secretary Ken Salazar, who has responsibility for the MMS, stated that the agency will temporarily suspend the issuance of drilling permits for offshore wells. The suspension of the issuance of drilling permits will not have any affect on Leed's operations provided that the Department recommences the issuance of such permits by the third quarter of 2010, which is when Leed plans to commence the drilling of the South Marsh Island block 8 prospect.

Outlook

The Company expects that production volumes should more than double in the quarter ended 30 June 2010 following commencement of production from the Ship Shoal 201 well. In addition, Leed is expecting increased production from the Eugene Island A-8 well which will have a further material impact once the recompletion is performed.

The Company continues work on its pre-spud drilling plans at Sorrento Dome, South Marsh Island block 8 and Grand Isle block 95.

Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented:

"We are pleased to report the commencement of production at Ship Shoal block 201 and look forward to finalising enhancement activities at Eugene Island during the next quarter. Our aim is to increase production materially in the upcoming period, and this will significantly improve the Company's revenue and cash flow."

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NOTES TO EDITORS

Review by a qualified person

The information contained in this announcement has been reviewed and approved by Dennis Jordan, P.E. (Certified Petroleum Engineer), Engineering Advisor to the Company who has a BS in engineering and is a member in good standing of the Society of Petroleum Evaluation Engineers (SPEE) and the Society of Petroleum Engineers (SPE), with over 37 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 17 offshore blocks 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.

Glossary

boe - barrels of oil equivalent, calculated on the basis of six thousand cubic feet of gas equals one barrel of oil

boepd - barrels of oil equivalent per day

MMS - the U.S. Minerals Management Service, the federal agency with regulatory authority on Outer Continental Shelf mineral exploration activities

Probable Reserves - Probable Reserves are those reserves which geologic and engineering data demonstrate with a degree of certainty sufficient to indicate they are more likely to be recovered than not. When probabilistic methods are used, there is at least a 50% probability that the quantities actually produced will exceed the sum of proved and probable reserves.

Proved Reserves- Proved Reserves are the estimated volumes of crude oil, condensate, natural gas and natural gas liquids which, based upon geologic and engineering data, are reasonably certain to be commercially recovered from known reservoirs under existing economic and political/regulatory conditions and using conventional or existing equipment and operating methods. When probabilistic methods are used, reasonable certainty means there is a 90% probability that the quantities produced will exceed the estimate of proved reserves. Proved reserves are limited to those quantities of hydrocarbons which have been evaluated either by actual production or by analytical tools and methods which demonstrate reasonable certainty of future recovery.

1P - Proved reserves

2P - the combined total of Proved and Probable reserves