Leed in Strong Financial Position from GOM Assets to Grow Business
Leed acquires, explores, develops and operates oil and natural gas properties offshore of the United States in the Gulf of Mexico and onshore in the Gulf Coast region. At December 31, 2008, Leed owned mineral interests in 17 blocks located in federal waters off the Louisiana coastline and one onshore field.
Leed was admitted to the AIM Market of the London Stock Exchange ("AIM") on August 15, 2007 and trades under the symbol LDP.
- Significant increase in production at the end of the period as compared to the beginning of the period.
- Production for the 6 month period to December 31, 2008 totalled 220.2 MBOE.
- Eugene Island A-8 well drilled, completed and placed on commercial production on December 30, 2008.
- Eugene Island A-7 well completed and commenced commercial production on October 7, 2008.
- 33% increase in 1P reserves to 11.7 MMBOE (as of January 1, 2009) from April 1, 2008 (92% increase from June 2007, just prior to admission).
- 17% increase in 2P reserves to 24.1 MMBOE as of January 1, 2009 from April 1, 2008 (53% increase from June 2007, just prior to admission).
- Raised ₤15.0 million (gross) from the issuance of 25 million ordinary shares in August 2008.
- Sale by Leed of 25% of its interest in Eugene Island assets pursuant to an option exercise yielded US $15.8 million.
- Revenue of $15.1 million
- EBITDAX of $13.4 million
- Income before tax of $3.6 million
Post Period Update
- Eugene Island A-6 well successfully re-completed and platform water handling facility enhanced.
- At the end of February 2009, the Eugene Island Field is producing at a stable rate of 6,000 BOEPD.
- Bank borrowing base confirmed at $45.2 million.
Howard Wilson, President and Chief Executive of Leed, commented, "The period under review saw a large increase in production from our assets on the Eugene Island field which will translate to revenues over the coming months. Leed is therefore in a very strong position in terms of reserves, cash flows and group borrowing facilities to grow the business."
With the global economic conditions continuing to impact, Leed is adopting a cautious approach to our short term drilling plans, however the Board believes these conditions will present major opportunities to grow the business more rapidly. We therefore look to the future with confidence."