Leed Resources Share News (LDP)

Hard pressed Gulf of Mexico-focused oil company Leed Petroleum saw net attributable production tumble in the final quarter of 2010.Total net attributable production averaged approximately 1,156 barrels of oil equivalent per day (boepd) during December 2010 and 1,210 boepd (65% gas) for the quarter ended 31 December 2010, representing a decrease of 30% from the previous quarter.An independent audit of Leed's reserves as at the beginning of 2010 indicated net 2P (proved plus probable) reserves declined by 1m barrels of oil equivalent (mmboe) in the second half of 2010.Proved (1P) reserves declined by 1.4 mmboe (12%) over the same period. Reserve reductions are primarily due to production run-off, the company said. A portion of 3P (proved + probable + possible) reserves were transferred to prospective resources by the independent auditor in order to comply with the latest changes to SPE/WPC/AAPG/SPEE Petroleum Resources Management System reserves definitions that clarified the distinction between possible reserves and prospective resources. This change resulted in reclassification of 23.8 mmboe of possible reserves to the prospective resource category. In total, the 3P reserves were adjusted downward by 23.8 mmboe (63%) while 3P plus prospective resources volumes declined by 1.9 mmboe (3%) from 1 July, 2010.