Leed Posts '09 Financial, Operational Highlights

Leed Petroleum PLC announced its interim results for the six months ended December 31, 2009. 

Highlights

Operational

  • For the six months ended December 31, 2009, net oil, natural gas and natural gas liquids production was 238.5 MBOE (2008: 230.1 MBOE).
  • Higher-capacity natural gas compressor installed at Eugene Island 184 platform.
  • Installed gas lift supply line in Main Pass 64 oil field during August 2009, approximately doubling well production capability.
  • East Cameron 317 field returned to production during December 2009 after shut in.
  • Successfully tested the United Lands 14-1 well in the Sorrento Dome field during August 2009.

Financial

  • Raised £20.0 million (£19.3 million net after expenses) from the issuance of 400 million ordinary shares at 5 pence.
  • Amended bank credit facility and reduced outstanding bank debt to $35.0 million.
  • Bank debt net of working capital only $5.5 million at period end.
  • Revenue of $11.0 million earned in the six months ended December 31, 2009.

Post Period Update

  • During January 2010 Leed averaged net attributable production of approximately 1,036 BOEPD.
  • Recommenced drilling program in February 2010 encountering 65 feet of net pay sand in the Ship Shoal 201 A-6 well. Independent reservoir auditing firm attributed net 1P reserves of 1.1 MMBOE and net 2P reserves of 1.3 MMBOE (84% natural gas) to the reservoir. Well flow tested at stabilized gross rate of 10.4 MMCFD and 423 BOPD (approximately 2,156 gross BOEPD equating to 1,729 net BOEPD). Following completion of facilities during calendar Q2 2010, Company production expected to more than double from current level.

Howard Wilson, President and Chief Executive of Leed, commented, "Operationally, the focus of the first half was on the stabilization of production within financial constraints while planning for the future drilling campaign. The second half will focus on plan execution across our asset base by performing several low cost, high quality projects which we believe will provide production diversity.

"We have initiated the next phase of our growth strategy with enthusiasm. Our recent Ship Shoal A-6 well drilling success should more than double the Company's net production from the current level. We look forward to growing shareholder value as we develop our inventory of development, exploitation and exploration opportunities."

 

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