Production and Financial Update

Leed Petroleum PLC

("Leed" or the "Company")

Operational Update

Production and Financial Update

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

Highlights

·; Eugene Island A-7 successfully recompleted to a shallower horizon and producing at a gross rate of 802 boepd (501 boepd net)

·; Production from Ship Shoal 201 A-6 well has been marginally higher since coming on line on 6 May 2010 at a current gross rate of 1,642 boepd (1,317 boepd net)

·; The Company's total net attributable production currently averages 2,065 boepd (63% gas)

·; Semi-annual borrowing base re-determination process concluded

Production Update

The Company is pleased to report that the Eugene Island 183 A-7 well has been successfully recompleted to a shallower horizon and is currently producing at a gross rate of 802 boepd (501 boepd net) (33% gas). Additionally, the Ship Shoal 201 A-6 well continues to produce consistently at a gross rate of 1,642 boepd (1,317 boepd net) (79% gas) since being placed on production on 6 May 2010.

Financial Update

As previously announced, the Company has a credit facility with its bank, UniCredit Bank AG ("UniCredit"), comprised of two tranches totalling US$34.75 million, namely a revolving credit line fully utilised at US$30 million (subject to semi annual re-determination) and a term loan of US$4.75 million.

As part of the semi-annual re-determination of the revolving facility, which takes into account the 1Q 2010 dip in well performance, the Company will repay US$5.0 million of the revolving credit line leaving the remainder of the available US$25 million line fully utilised. The Company will also make a scheduled payment of US$250,000 on the term loan, resulting in an outstanding balance of US$4.5 million.

As at 30 April 2010, the Company had cash and cash equivalents of approximately US$19.9 million. Leed anticipates that the Company's available cash resources will be sufficient to continue to execute its development and exploration plans.

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

"The Company's total estimated net attributable production has more than doubled from 958 boepd for the period ended 31 March 2010 to average 2,065 boepd since concluding remedial production enhancements to legacy gas lift wells along with the recompletion of the A-7 well in the Eugene Island 183 Field, as well as the commencement of production from the Ship Shoal 201 A-6 well."

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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

boepd - barrels of oil equivalent per day