Reserve Update

Leed Petroleum PLC

("Leed" or the "Company")

Reserve Update

Audited Reserves as at 1 January 2010

Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and production company focussed on the Gulf of Mexico, today announces the results of its recently completed reserve audit.

Reserves Estimate

Collarini Associates, an independent reserve auditor, ("Collarini") has audited Leed's reserves, effective as of 1 January 2010. The Company's net attributable reserves are set out immediately below:

Reserve auditor Collarini reported that reserves in the 1P, 2P and 3P categories all remained approximately in line with the previous audit, primarily a result of Leed's decision to temporarily suspend oil and gas development and exploration plans allowing the Company to conserve cash. Though necessary in the short run, this limited the Company's ability to add reserves during the six month period to 31 December 2009.

The Collarini reserve report used the NYMEX forward strip pricing as of December 31, 2009, which started with January 2010 pricing at $81.73, per barrel of oil and $5.77 per mmBtu of gas. Based upon these starting prices, the Net Present Value at a 10% discount ("NPV10") of the proved reserves was $296 million. The NPV10 of the 2P reserves totalled $503 million and the NPV10 of the 3P reserves totalled $1.3 billion.

 The comparative net attributable reserve positions are set out in the following table:

Source: Collarini

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

"Our focus during the first quarter of 2010 and remainder of the calendar year 2010 will be on allocating capital expenditures to lower risk drilling and remedial well work with the aim of significantly improving production and adding reserves. We have got off to a great start in 2010 with the successful drilling and testing of the Ship Shoal 201 A-6 well, which will more than double the Company's production output when brought on line in the second quarter of this year..

During this week, members of Leed's executive management will be in London and Edinburgh presenting to a number of the Company's major shareholders and other market participants. The presentation that management will be using is available for all shareholders to download from the Company's website at www.leedpetroleum.com."

For further information please contact:

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 B.S. 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.

Reserve Estimates

Collarini Associates' reserve estimates stated in the announcement are made in accordance with guidelines published by the Society of Petroleum Engineers and are based on its interpretation of the available data.

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 utilize its regional expertise to identify and purchase value adding assets.

Glossary

bcf - billion standard cubic feet of gas

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

mmBtu - million British thermal units

NYMEX - the New York Mercantile Exchange, a commodities exchange on which oil and natural gas futures with delivery points in the United States are traded

Reserve Definitions*

1P - Proved Reserves

2P - Proved and Probable Reserves

3P - Proved, Probable and Possible Reserves

3P+Prospective Resources - Proved, Probable and Possible Reserves plus Prospective Resources

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.

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.

Possible Reserves are those reserves which geologic and engineering data demonstrate are less certain than probable reserves and can be estimated with a low degree of certainty, insufficient to indicate whether they are more likely to be recovered than not. When probabilistic methods are used, there should be at least a 10% probability that the quantities actually produced will exceed the sum of proved, probable and possible reserves.

Prospective Resources are those hydrocarbon volumes which it is estimated may be potentially recoverable from as yet undiscovered accumulations; prospective resources can be quoted as either unrisked or risked volumes; the volumes of prospective resources quoted in this announcement are unrisked.