The MMS has confirmed that Leed was the highest bidder on Ship Shoal Block 201 and Main Pass Block 115. Final award of these leases is subject to a geological review by the MMS to confirm adequacy of the bid amounts. In previous lease sales, MMS reviews have been completed within approximately four months of the sale and the Company expects to receive approval of its bids. A further announcement will be made by Leed in due course.
Ship Shoal Block 201 in particular attracted significant interest and was a very competitive block. The Company placed bids of US$1.57m for Ship Shoal Block 201 and US$0.23m for Main Pass Block 115.
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 both blocks.
Howard Wilson, President and Chief Executive of Leed Petroleum PLC, commented:
"Our team, working with Byron, investigated numerous lease block opportunities available for sale to find blocks that we believed could create significant shareholder value. We were the highest bidder on two of these blocks, including the promising Ship Shoal 201 block, in what was a very competitive lease sale. This is an excellent result. These assets compliment our existing portfolio and fit into our growth strategy of increasing production and shareholder value through the drilling of lower risk exploitation, exploration and development opportunities."
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