Reserve Update

Leed Petroleum PLC

("Leed" or the "Company")

Reserve Update

Audited Reserves as of 1 July 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.

Collarini Associates, an independent reserve auditor based in Houston, Texas ("Collarini") has audited Leed's reserves, effective as of 1 July 2010. Based on Collarini's estimates, net 1P, 2P and 3P reserves were essentially in line with the previous audit as of 1 January 2010, with increases in net reserves offsetting production run-off.

During the first six months of 2010 Leed's primary emphasis was converting non-producing reserves to the producing category, resulting from the previously announced work at Ship Shoal Block 201 and Eugene Island Block 183 and improved waterflood performance at Main Pass Block 64. Consequently, proved producing reserves increased over 70% from that reported as of 1 January 2010.

The Company's net attributable reserves are set out immediately below:

The Collarini reserve report used the NYMEX forward strip pricing as of 30 June 2010, which started with July 2010 pricing at $72.95 per barrel of oil and $4.72 per mmBtu of natural gas. Based upon these starting prices, the assumed production profile and estimated future costs other than taxes, the Net Present Value at a 10% discount ("NPV10") of the proved reserves was $264 million. The NPV10 of the 2P reserves totalled $459 million and the NPV10 of the 3P reserves totalled $1.2 billion.

Source: Collarini

The Company is also pleased to announce that Jim Haag has joined Leed Petroleum as Vice President of Reservoir Engineering and Business Development. Mr. Haag has over 35 years of industry experience in oil and gas exploration, production and energy consulting. Immediately prior to joining Leed Petroleum, Mr. Haag was a Senior Vice President at RPS Energy, an international energy consulting firm. Mr. Haag worked for Texaco, Inc. from 1975 to 2001 in reserves determination, property evaluations, acquisitions & divestitures and business development in the Gulf of Mexico and the Gulf Coast region. Mr. Haag holds a Bachelor of Science degree in Civil Engineering from the Pennsylvania State University and is a professional engineer.

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

"We are pleased to have maintained our level of reserves whilst continuing to produce and generate good cash flow. The appointment of Jim Haag has added a seasoned professional to our management team, and consistent with our plans to allocate capital expenditures on lower risk drilling and remedial well work for the balance of calendar year 2010, we are pleased with the progress of drilling operations on the Main Pass 64 #1 sidetrack 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 Jim Haag, P.E. (Certified Petroleum Engineer), who holds a Bachelor of Science degree 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 35 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 properties.

Glossary

bcf - billion standard cubic feet of gas

mmboe - million barrels of oil equivalent, calculated on the basis of six 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.