Leed Strikes 3 More Pay Sands at Eugene Island

Leed Petroleum PLC, the oil and gas exploration and production company focused on the Gulf of Mexico, announces an update on the drilling activity at the Eugene Island A-7 well.

The Eugene Island A-7 well was spudded by the ENSCO 98 jackup on April 17, 2008 and has reached total measured depth of 15,447 feet. Electric line logs have confirmed that three pay sands have been encountered in this section of the wellbore, in addition to those announced on May 23, 2008 and June 5, 2008, and contain a total of 45 feet of true vertical thickness pay. Two of these new zones were the two primary objectives of the well, being development and exploration targets. To date, six sands containing a total of 125 feet of true vertical thickness pay have been encountered in the A-7 well.

In order to maximize flow rates and the recovery of reserves from these three objectives, the Company has commenced a short sidetrack of the lower section of the wellbore. Completion operations will begin after the well is sidetracked and a further announcement will be made in due course.

The Eugene Island Blocks are located 50 miles offshore, south of Morgan City, Louisiana in the Gulf of Mexico in approximately 80 feet of water. Leed's management has built an inventory of development projects and exploration targets across the Eugene Island Block 183/184 Field.

"The A-7 well has yielded a tremendous result for the Company and will be a commercial success," Howard Wilson, President and Chief Executive of Leed Petroleum, said. "In proving up six sands we have exceeded our initial expectations. Additionally, the success of the A-7 well has opened several new avenues for exploitation and exploration in the Eugene Island 183/184 field. Beginning with the planning, execution and completion of the short sidetrack of the A-7 well, our technical team will continue work to identify the most efficient field development programme to recover reserves identified by this well."