Leed Petroleum PLC announced that the Company has been awarded the South Marsh Island Block 8 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 27 June 2008, the MMS confirmed that Leed's bid of $2,111,111 for South Marsh Island Block 8had been accepted. The South Marsh Island block is located approximately 110 miles southwest of New Orleans, Louisiana in 60 feet of water. As soon as practicable, Leed intends to add the South Marsh Island Block 8 drilling opportunities identified by Leed's technical team to the Company's drilling schedule.
The South Marsh Island Block 8 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.
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