11th May 2009 07:00
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For immediate release |
11 May 2009 |
Leed Petroleum PLC
("Leed" or the "Company")
Production Operations Update
Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and production company focused on the Gulf of Mexico, announces an update on production and the operational capacity at the Eugene Island and non-operated East Cameron and Main Pass fields. For the three months ended 31 March 2009, the Company booked net oil and gas sales volumes of 118,113 bbls and 782,731 Mscf attributable to the Eugene Island field which equates to an average gross sales rate of approximately 4,600 BOEPD.
Eugene Island Field Production
Average Eugene Island production for the quarter was affected by gas compressor repair and maintenance, gas sales pipeline availability and the A-6 well being shut-in for approximately 4 weeks during the well recompletion.
The Company has recently received notice from Transcontinental Gas Pipe Line Company, LLC ("TGPL") stating that the pipeline system is experiencing high utilisation of services, pipeline maintenance and various compressor station maintenance activities. These have resulted in reduced operating flexibility, and TGPL has advised that this situation may continue for the next several weeks.
The operational difficulties being experienced on the TGPL pipeline system have affected Leed's ability to sell its production from the Eugene Island field with approximately five days of associated shut-in during April 2009 and two days to date in May 2009. Prior to these difficulties, due to a combination of natural decline and operational constraints, the field was producing at a gross rate of 5,000 BOEPD and is currently producing at this rate.
Non-Operated Properties
Leed has previously announced that the non-operated East Cameron field, in which Leed holds a 25% working interest, is shut-in because of hurricane related damage to a non-company owned pipeline that carries gas from the Gulf of Mexico to an onshore treatment facility. Recently, further damage has been discovered on the pipeline, which will further delay the restoration of production. Historically, East Cameron represents a small proportion of Leed's production volumes.
Production at the Company's Main Pass field was curtailed during the quarter due to a lack of field gas necessary to lift oil out of the wellbores. The Operator is addressing this issue. Main Pass also represents only a small proportion of Leed's production volumes.
Further Updates
The Company will provide additional information on the status of its Eugene Island and East Cameron fields as appropriate.
For further information please contact:
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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 3206 7204 |
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Tim Graham |
+44 20 3206 7206 |
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Buchanan Communications Ltd |
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Ben Willey |
+44 20 7466 5118 |
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Bobby Morse |
+44 20 7466 5151 |
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Chris McMahon |
+44 20 7466 5156 |
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 17 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 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 properties.
Glossary
Mscf - thousand standard cubic feet of gas
bbls - barrels of oil
BOEPD - barrels of oil equivalent per day, calculated on the basis of six thousand cubic feet of gas equals one barrel of oil
Related Shares:
Leed Resources