11th Jun 2009 14:49
LENI GAS & OIL Plc
("LGO" or the "Company")
11 June, 2009
Gulf of Mexico - Ship Shoal Block 202 A Platform Acquisition
Leni Gas & Oil plc (LGO) the AIM listed international oil and gas exploration, development and production company notes today's statement from Leed Petroleum ("Leed") announcing the signing of a Purchase and Sale Agreement to acquire the Ship Shoal 202 "A" platform.
Leed intends to use the platform to access the Company's prospects and development targets on Ship Shoal Blocks 201 and 202 and also Ship Shoal Block 197 on successful development drilling. As consideration for the acquisition of the platform, Leed will assume an estimated abandonment liability of no more than $2 million and will receive $200,000 from the former owners.
Closing on the transaction is subject to Leed obtaining all necessary regulatory approvals from the Minerals Management Service and performing due diligence to verify that the platform will be suitable for Leed's anticipated operations
Byron Energy Inc. will have the right to participate in the acquisition of the platform pursuant to the joint operating agreement signed by the companies covering Ship Shoal Block 202. LGO has a 28.94% holding in Byron Energy Pty Ltd ("Byron").
As announced on 08 April 2009, LGO has completed a Heads of Agreement with Byron Energy Pty Ltd ("Byron Energy") to transfer the Company's 28.94% shareholding in Byron Energy from an indirect to a direct ownership of its US Gulf of Mexico oil and gas assets. This transfer is subject to Byron Energy shareholder approval; LGO qualifying under Mineral Management Service requirements to acquire the working interests in the Eugene Island assets and compliance to AIM rules.
David Lenigas, Executive Chairman, commented:
"Acquisition of the Ship Shoal production infrastructure is tremendous news for the future expansion of our Gulf of Mexico acreage with the development of another production centre in addition to Eugene Island. The purchase of the infrastructure will support the development plan of the four Ship Shoal blocks which we look forward to announcing in due course."
Enquiries:
Leni Gas & Oil plc
David Lenigas, Executive Chairman
Fraser Pritchard, Executive Director (Operations)
Tel +44 (0) 20 7016 5101
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
Tel +44 (0) 20 7628 3396
Mirabaud Securities Limited
Rory Scott
Tel +44 (0) 20 7878 3360
Pelham PR
Mark Antelme / Henry Lerwill
Tel + 44 (0)20 3178 6242
NOTES TO EDITORS
Leni Gas & Oil Plc is an international oil and gas exploration, development and production company headquartered in London, trading on the London Stock Exchange's AIM index. The Company has assets in the US GoM and Lower 48, Spain, Trinidad, Hungary and Malta. LGO's strategy is delivering growth through the acquisition of proven reserves and the enhancement of producing assets in low risk countries.
Leed Petroleum PLC
("Leed" or the "Company")
Ship Shoal Block 202 A Platform Acquisition
Leed Petroleum PLC (AIM: LDP), the oil and gas exploration and production company focused on the Gulf of Mexico, today announces the signing of a Purchase and Sale Agreement to acquire the Ship Shoal 202 "A" platform.
Leed intends to use the platform to access the Company's prospects and development targets on both Ship Shoal Block 201 and Ship Shoal Block 202. Further, should the Company drill a successful well on Ship Shoal Block 197, located immediately to the north of Ship Shoal Block 202, the platform is substantial enough to process this production.
As consideration for the acquisition of the platform, Leed will assume an estimated abandonment liability of no more than $2 million and will receive $200,000 from the former owners. Closing on the transaction is subject to Leed obtaining all necessary regulatory approvals from the Minerals Management Service and performing due diligence to verify that the platform will be suitable for Leed's anticipated operations.
Byron Energy Inc. will have the right to participate in the acquisition of the platform pursuant to the joint operating agreement signed by the companies covering Ship Shoal Block 202.
Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented:
"The purchase of the Ship Shoal 202 A platform significantly improves the economics of the Ship Shoal 197, 201 and 202 drilling programme by reducing development capital and cycle time to first production. These leases are located in a mature area of the Gulf of Mexico where large quantities of oil and gas have been produced and where material prospects remain. Leed now holds 15,000 gross acres in this promising area of the Gulf.
The Company's specific drilling programme on these leases will be announced in due course."
For further information please contact:
Leed Petroleum PLC
Howard Wilson, President and Chief Executive +1 337 314 0700
James Slatten, Chief Operating Officer +1 337 314 0700
Matrix Corporate Capital LLP
Alastair Stratton +44 20 3206 7204
Tim Graham +44 20 3206 7206
Buchanan Communications Ltd
Ben Willey +44 20 7466 5118
Bobby Morse +44 20 7466 5151
Chris McMahon +44 20 7466 5156
NOTES TO EDITORS
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 18 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 assets.
Related Shares:
CERP.L