Leed Petroleum has announced the results of a reserve audit and recent production figures for the Eugene Island field.
Collarini Associates, an independent reserve auditor, ("Collarini") has audited Leed's reserves, effective as of January 1, 2009. The Company's net attributable reserves have grown as set out immediately below:
The comparative net attributable reserve positions as at June 2007, April 2008 and January 2009 are set out in the following table:
Importantly, the Company's Proved Developed Reserves have increased by 154% since admission to AIM and by 33% since the April 1, 2008 audit. The combination of increasing Proved Developed Reserves in addition to the increase in overall 1P, 2P and 3P reserves highlights the Company's ability to deliver on its stated goals of converting existing reserves into developed, saleable product in parallel to growing the Company's reserve base.
The recent growth in Leed's reserves is primarily attributable to:
The Company believes that substantial additional exploration potential exists on its properties which is not accounted for in the reserve numbers reported in this announcement.
Eugene Island Production Update
Production from the Company's Eugene Island properties has significantly improved cash flow and increases the ability of Leed to continue to fund further development and exploration projects. The current gross daily production rate from the Company's Eugene Island field is approximately 5,000 boepd (50% oil), or 3,750 boepd on a working interest basis, as compared to the estimated gross average production during the quarter ended 31 December 31, 2008 of approximately 3,000 boepd (50% oil), or 2,250 boepd on a working interest basis. The Company will have the capacity to make additional and material flow rate increases following execution of the previously announced A-6 re-completion and once an upgrade of platform water handling facilities has been finalised. Both projects are expected to be finished early in the current quarter.
The majority of the Company's production is from the wells outlined below:
Howard Wilson, President and Chief Executive of Leed, commented, "We are delighted both with the progress of the Company since our admission to AIM and that Leed has a solid reserve and production base on which to build our future growth plans.
"The Company's latest reserve report highlights the success of our Eugene Island drilling program, in addition to our ability to identify and acquire quality assets through the US Government's MMS lease sale process. It also demonstrates Leed's ability to commercialise its assets and deliver value and growth to our shareholders.
"The production and revenue base has likewise grown tremendously and has significantly enhanced the Company's cash flows. We are now focused on improving operational efficiency to maximize cash flow in the short term and to strengthen the Company's balance sheet for the next stage of our development."
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