Leed Resources Regulatory News (LDP)

1 Jul 2008 12:51

1 July 2008

LENI GAS & OIL PLC

("Leni Gas and Oil")

Award of Lease in Gulf of Mexico

Leni Gas & Oil plc, the oil & gas exploration, development and production company, notes today's announcement by Leed Petroleum PLC ("Leed"), a company listed on Aim, that Minerals Management Service (MMS) has awarded Leed the South March Island Block 8 lease in the Central Gulf of Mexico. 

Leni Gas & Oil, as announced today, has acquired a 22.3% interest in Byron Energy Pty Ltd ("Byron"), which has a pre-existing scouting agreement with Leed. According to the agreement Byron has the right to acquire up to 25% of the Leed's working interest in the Block.

Leed RNS of today states:

Leed Petroleum PLC, the oil and gas exploration and production company focused on the Gulf of Mexico, today announces that the Company has been awarded the South Marsh Island Block 8 lease in the Central Gulf of Mexico, Minerals Management Service ("MMS") Lease Sale 206.

As announced on 19 March 2008, the MMS has confirmed that Leed was the highest bidder on two blocks, South Marsh Island Block 8 and West Cameron Block 106 in the Central Gulf of Mexico Lease Sale 206.  On 27 June 2008, the MMS confirmed that Leed's bid of $2,111,111 for South Marsh Island Block 8 had been accepted. The South Marsh Island block is located approximately 110 miles southwest of New Orleans, Louisiana in 60 feet of water. As soon as practicable, Leed intends to add the South Marsh Island Block 8 drilling opportunities identified by Leed's technical team to the Company's drilling schedule.

The South Marsh Island Block 8 lease will be held for an initial five year "primary" term during which the Company will have the right to explore and produce hydrocarbons. Once production is established from the lease, the lease will be held by production until 180 days after the cessation of production. 

In accordance with the Company's pre-existing scouting agreement with Byron Energy Pty. Ltd. ("Byron"), Byron will have the right to acquire up to 25% of the Company's working interest in the block (the "Option Right").

1 Interest - Working interests (WI) are shown and are subject to various royalty payments. Net revenue interests (NRI) include any and all royalty payments. Working and Net Revenue Interests in the above property is subject to the Option Right.

Pelham PR

Charles Vivian Tel: +44 (0)20 7743 6672