Leed Resources Regulatory News (LDP)

3 Jul 2008 09:52



For Immediate Release 3 July 2008

Leni Gas & Oil plc

Leed Drilling Update

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, regarding drilling activity at the Eugene Island A-7 well.

Leni Gas & Oil 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.

Pelham PR

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

Leed RNS of today states

Leed Petroleum PLC, the oil and gas exploration and production company focused on the Gulf of Mexico, announces an update on the drilling activity at the Eugene Island A-7 well. 

As announced by the Company on 20 June 2008, after drilling of the original wellbore was completed, electric line logs confirmed the existence of six sands containing a total of 125 feet of true vertical thickness pay. The well has now been sidetracked through four of the six sands encountered in the original wellbore to a measured depth of 15,396 feet. Logging operations in the sidetracked portion of the wellbore have been performed and confirm 124 feet of true vertical thickness of pay in the four sands, which is 56 feet more than that encountered in the original wellbore. Accordingly, in total, the Eugene Island A-7 well has 181 feet of true vertical thickness of pay in all six pay sands.

With drilling now concluded, the Company is working on casing and completing the Eugene Island A-7 well for production from one of the primary targets, which has 41 feet of true vertical thickness pay. The first sale of production from this zone is expected to occur during this quarter of 2008.

Upon establishment of production from the A-7 well, Leed intends to use the Ensco 98 drilling rig at Eugene Island to drill the A-8 well. 

The Eugene Island Blocks are located 50 miles offshore, south of Morgan City, Louisiana in the Gulf of Mexico in approximately 80 feet of water. Leed's management has built an inventory of development projects and exploration targets across the Eugene Island Block 183/184 Field.

Review by a qualified person

The information contained in this announcement has been reviewed and approved by Chris Thompson, Manager of Business Development at the Company, BSC GradDip, who is a reservoir engineer (SPE) with over 15 years experience within the sector.

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 17 offshore fields and one 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.