Leed Updates on Production at Eugene Island, Main Pass Fields in GOM
Leed Petroleum has provided an update on production and the operational capacity at the Eugene Island and non-operated East Cameron and Main Pass fields. For the three months ended March 31, 2009, the Company booked net oil and gas sales volumes of 118,113 bbls and 782,731 Mscf attributable to the Eugene Island field which equates to an average gross sales rate of approximately 4,600 BOEPD.
Eugene Island Field Production
Average Eugene Island production for the quarter was affected by gas compressor repair and maintenance, gas sales pipeline availability and the A-6 well being shut-in for approximately 4 weeks during the well recompletion.
The Company has recently received notice from Transcontinental Gas Pipe Line Company, LLC ("TGPL") stating that the pipeline system is experiencing high utilisation of services, pipeline maintenance and various compressor station maintenance activities. These have resulted in reduced operating flexibility, and TGPL has advised that this situation may continue for the next severalweeks.
The operational difficulties being experienced on the TGPL pipeline system have affected Leed's ability to sell its production from the Eugene Island field with approximately five days of associated shut-in during April 2009 and two days to date in May 2009. Prior to these difficulties, due to a combination of natural decline and operational constraints, the field was producing at a gross rate of 5,000 BOEPD and is currently producingat this rate.
Leed has previously announced that the non-operated East Cameron field, in which Leed holds a 25% working interest, is shut-in because of hurricane related damage to a non-company owned pipeline that carries gas from the Gulf of Mexico to an onshore treatment facility. Recently, further damage has been discovered on the pipeline, which will further delay the restoration of production. Historically, East Cameron represents a small proportion of Leed's productionvolumes.
Production at the Company's Main Pass field was curtailed during the quarter due to a lack of field gas necessary to lift oil out of the wellbores. The Operator is addressing this issue. Main Pass also represents only a small proportion of Leed's production volumes.