(Adds detail and share price.) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Gulf of Mexico-focused oil and gas company Leed Petroleum PLC (LDP.LN) said Thursday it agreed to pay off $3 million in borrowings and pay its bank higher interest rates after production problems hurt earnings and put it in breach of its loans. Leed Petroleum said it told its bank there was a technical default on its credit facility at June 30 relating to certain earnings requirements caused by problems with a well at Eugene Island, off the coast of Louisiana. Leed said its bank waived the default in exchange for higher interest payments and an immediate $3 million repayment. Total debts outstanding are now $26.5 million, Leed said. It has cash of $10.8 million after making the $3 million repayment. The company said net attributable production for the three months to June 30 was 1,391 barrels of oil equivalent a day, a 45% improvement on the previous quarter. At 0819 GMT, shares in Leed Petroleum were down 0.88 pence or 24% at 2.8 pence, underperforming a 1% lower Alternative Investment Market. Its shares have lost 54% since the start of the year. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com (END) Dow Jones Newswires July 01, 2010 04:28 ET (08:28 GMT)