Leed Hands GOM Reins to Marlin

- Leed Hands GOM Reins to Marlin

Monday, May 23, 2011
Leni Gas & Oil plc

Leni Gas & Oil announced resumption of operations in the Gulf of Mexico following the recent announcements by Leed Petroleum plc ("Leed").

Leed has announced that it has sold all its Gulf of Mexico properties and LGO has been advised that the new operator will be Marlin Energy LLC ("Marlin"), a private oil and gas operations company, based in Lafayette, Louisiana.

LGO met with Marlin last week and expect that production operations at Eugene Island 184 will be restored by early June and understand that Marlin are planning new sidetrack developments on EI 184 in the coming months to lift production.

Neil Ritson, LGO's Chief Executive, stated, "We are pleased that the operations will shortly be restored and that the hiatus has been kept as brief as possible, and we look forward to working with the new operator in order to accelerate the pace of development on these properties."

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Leed Halts Production at GOM Platforms

Leed Halts Production at GOM Platforms

Tuesday, April 05, 2011

Leni Gas & Oil plc

Leni Gas & Oil announced potential short-term impacts following the recent announcements by Leed Petroleum plc ("Leed").

Leed has notified the Company that with immediate effect it has temporarily suspended production from the Eugene Island -184 ("EI-184") and Ship Shoal-201 ("SS-201") platforms where LGO has interests in the Gulf of Mexico. This follows the decision of Leed's Board of Directors to cease business operations at the end of March. LGO holds net royalty interests in the EI-184 development ranging from 2.50540% to 6.04167% and receives a 0.4714% overriding royalty interest from SS-201. Leed has indicated that these suspensions are expected to be temporary and will be reviewed once their principle creditor, UniCredit Bank AG ("UniCredit"), has appointed a receiver.

Production from EI-184 has been seriously constrained during 2011 awaiting the planned recompletion of the A-8 well and consequently the present shut-in has only marginal impact on the Company's financial projections for 2011. The longer term impact is considered to be a deferral of production which is expected to be restored with reserves recovered at a later date.

The Company continues to monitor the situation closely and has notified Leed and UniCredit of its wish to see production operations restored without delay.