Leed Petroleum PLC has been awarded the West Cameron block 106 lease in the Central Gulf of Mexico Minerals Management Service (MMS) Lease Sale 206.
As announced on March 19, 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 13 June 2008, the MMS confirmed that Leed's bid of US $1,288,888 for the West Cameron 106 block had been accepted. The West Cameron block is located approximately 160 miles southwest of New Orleans, Louisiana in 40 feet of water. Leed has identified drilling opportunities on the block, and the Company intends to add these projects to its drilling schedule as soon as feasible. The Company is confident that the MMS will also accept its bid on South Marsh Island Block 8.
The West Cameron block 106 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 will have the right to acquire up to 25% of the Company's working interest in the block.
"The West Cameron 106 block is complimentary to our existing portfolio and is an excellent fit for our growth strategy," said Howard Wilson, President and Chief Executive of Leed Petroleum. "The lease ranked as one of the most promising of all the blocks reviewed during the Company's selection process in a very competitive Lease Sale. We are excited that our bid has been accepted and plans to integrate drilling at West Cameron 106 into our operations schedule are already underway. Our portfolio of exploration and development opportunities has grown significantly through lease sale opportunities and we look forward to continuing that trend."
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