Leed Resources Regulatory News (LDP)

30 Jan 2008 15:40

Leed Petroleum PLC30 January 2008 LEED PETROLEUM PLC ("Leed" or "the Company") Leed Signs Sale and Purchase Agreement Leed Petroleum PLC, the oil and gas exploration and production company focusedon the Gulf of Mexico, today announces that the Company's operating subsidiary,Leed Petroleum LLC, has signed a Sale and Purchase Agreement ("SPA") withChallenger Minerals Inc. ("Challenger") to acquire Challenger's interests in theMain Pass 57, 64 and 65 blocks located on the outer continental shelf of theGulf of Mexico. Leed will acquire Challenger's interests in these Main Pass assets effective asof 1 August 2007 in exchange for assuming Challenger's portion of the assetretirement obligations relating to these blocks. Leed already owns non-operatedinterests in the Main Pass 64 and 65 leases, and Challenger's interests in theseleases described below will be additional to the interest Leed already owns. Aspart of the deal, Leed will also acquire interests in the southern half of MainPass block 57. The southern half of Main Pass block 57, which is adjacent toMain Pass Block 64, is producing a marginal quantity of oil from one well. In accordance with a pre-existing agreement the Company must offer to a thirdparty the opportunity to acquire 75% of the interest that Leed proposes toacquire under the SPA. Within thirty days of the offer, the third party mustthen elect whether it wishes to participate. The Challenger interests subject to the SPA are: ASSET OPERATOR INTEREST1 STATUS LEASE EXPIRY LEASE AREA COMMENTS DATE (km2)(All are U.S.) WI / NRI (%)Main Pass Medco Energi US Production, Held by 28.43 Currently Development and production* producing oilBlock 64 12.5 / 9.54167 Exploration and gas from 15 active wellsBlock 65 20 / 16.26666 Main Pass Palace Operating 9.375 / 7.380619 Production, Held by 10.11 Currently Company Development production* producing from 1Block 57 S/2 active well 1 Interest - Working interests (WI) are shown and are subject to various royaltypayments. Net revenue interests (NRI) include any and all royalty payments.Working and/or revenue interests may vary within a given licence area accordingto area and or depth. * Lease expires 180 days after cessation of production. A further announcement confirming Leed's final interests in the Main Pass assetsand stating the revised reserve estimates for Leed's interests in the Main Passassets will be made at the appropriate time. Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented: "The Company's management team knows the Main Pass area very well. This is asolid, low risk acquisition that, upon completion, will immediately increase theCompany's revenues and reserves." 30 January 2008 For further information: Leed Petroleum PLCHoward Wilson, President and Chief Executive +1 337 314 0700James Slatten, Chief Operating Officer +1 337 314 0700 Matrix Corporate Capital LLPAlastair Stratton +44 20 7925 3234Tim Graham +44 20 7925 7852 Pelham Public RelationsAlisdair Haythornthwaite +44 20 7743 6676Evgeniy Chuikov +44 20 3008 5506 NOTES TO EDITORS Operations Leed's operations are predominantly concentrated in the Gulf of Mexico. TheCompany operates through two subsidiaries3/4LP Inc. and LP LLC. Through LP LLC,the Group holds operating interests in Eugene Island block 183 and the southernhalf of Eugene Island block 184, Main Pass block 115, Grand Isle blocks 95 and100, the South Marsh Island blocks 5 and 6, a portion of the Sorrento Field andthe Ship Shoal block 205 as well as non-operating interests in the East Cameronblocks 317 and 318, Main Pass blocks 64 and 65 and Eugene Island block 172 andthe northern half of Eugene Island block 184. The Eugene Island assets (otherthan block 172), the East Cameron assets and the Main Pass blocks 64 and 65 areproducing fields located off the coast of the state of Louisiana in the Gulf ofMexico. This information is provided by RNS The company news service from the London Stock Exchange