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 Main Pass block 115 lease in the Central Gulf of Mexico Minerals Management Service (MMS) Lease Sale 205.
As announced on Oct. 5, 2007, Leed was confirmed as the highest bidder on the Ship Shoal 201 and Main Pass 115 blocks. On Jan. 25, 2008, the MMS confirmed that Leed's bid of U.S. $0.23m for the Main Pass 115 block had been accepted. The company is confident that the MMS will also accept its highest bid on Ship Shoal block 201 in the near future.
The Main Pass 115 block is located 83 miles southeast of New Orleans, Louisiana in 50 feet of water. Leed has identified several relatively low risk, high impact opportunities on the block, and the company intends to add these projects to its drilling schedule as soon as is feasible.
The lease on Main Pass block 115 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 will have the right to acquire up to 25% of the Company's working interest in the block.
"The Main Pass 115 lease is an excellent fit for the company's growth strategy as it is located in an area where we have a wealth of experience," Howard Wilson, president and chief Executive of Leed Petroleum PLC, said. "Drilling plans for Main Pass 115 are at an advanced stage, and we will integrate the project into our operations schedule as soon as planning and permitting constraints allow. We are optimistic that our bid for the Ship Shoal 201 block will soon be accepted, and we can add this to our rapidly growing portfolio of exploration and development opportunities."
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