Medco's Main Pass Sidetrack Expected to Add to Proven Reserves
Leed has elected to participate in operations to sidetrack the Main Pass 64 #1 well. The sidetrack was proposed by the operator of the field, Medco Energi (75% WI), and the Seahawk 2001 jackup commenced operations on August 23, 2010.
The Main Pass 64 #1 sidetrack well is expected to develop and add proved reserves in the field's primary pay zone.
The Company owns a 25% non-operated working interest and a 19.18% net revenue interest in the well. The well is planned to be drilled to a total measured depth of approximately 8,038 feet and completed for a total cost of approximately US $5,400,000 (US $1,350,000 net to Leed). Log results are expected by the end of third quarter 2010, with production expected to commence early in the fourth quarter.
Field Production Resumes
As previously announced, the third party oil sales line serving the field was shut in on May 25, 2010 while the oil transmission company performs pipeline maintenance and repairs. The transmission company estimates that repairs will be completed within 2 to 4 weeks. On August 21, 2010, the operator commenced barging oil to maintain production from the field while the pipeline is repaired. All wells are currently producing.
In January 2007, a waterflood project on the Main Pass field was reactivated. The Main Pass 64/65 waterflood project has yielded positive results, increasing field production from 2006 rates of 290 (56 net) BOPD to an average rate of 890 (170 net) BOPD during the month of May, 2010 prior to field shut-in for pipeline repair.
The Main Pass 64/65 field is located four miles offshore, southeast of New Orleans, Louisiana in approximately 30 feet of water.
Howard Wilson, President and Chief Executive of Leed, commented, "Further development of the Main Pass field will add substantial long life oil reserves to Leed's portfolio. Following the successful completion and sustained high production rate from the Ship Shoal A-6 well, the Main Pass 64 #1 sidetrack will continue to move the Company forward in the diversification of our Gulf of Mexico production base."