Leed Petroleum, the AIM listed oil and gas exploration and production company focused on the Gulf of Mexico, provids an operational update.

Highlights • Completion of Ship Shoal 201 A-6 well and commencement of first production. Production initiated on 6 May 2010 at a gross rate of 1,615 boepd (1,295 boepd net) • Progress at Sorrento Dome to establish production from the United Lands 14-1 well • Awarded Grand Isle 96 in MMS Lease sale 213 • Estimated net attributable company production for the three months to 31 March 2010 averaged 958 boepd (54% gas) (approximately 2,105 boepd gross)

Ship Shoal 201 The Ship Shoal 201 A-6 well was successfully drilled and completed during the quarter ended 31 March 2010. The Company is pleased to report that the well was placed on production on 6 May 2010 at a gross rate of 1,615 boepd (1,295 boepd net) (83% gas). This has resulted in a material increase in the Company's average daily production rate.

As previously reported, the Ship Shoal 201 A-6 well was drilled from the recently acquired Ship Shoal 202 'A' platform. Drilling and completion operations were finished ahead of schedule and within the $9.8 million budget allocated for the well. In order to bring production online, processing equipment was installed on the Ship Shoal 202 platform and the product sales line was recommissioned. Independent reservoir auditing firm, Collarini Associates of Houston, Texas, attributes net 1P reserves of 1.1 million boe and 2P reserves of 1.3 million boe to the reservoir (84% natural gas). The Company has a 100% working interest and an 80.2% net revenue interest in the well.

Sorrento Dome The Company has continued to carry out work at Sorrento Dome to enable commencement of production from the United Lands 14-1 well. Production from the United Lands 14-1 well will commence once the installation of the sales gas meter is completed and the non-productive United Lands 11-1 well is converted to a salt water disposal well. As previously reported, this well tested at a stable but restricted gross rate of 217 boepd (160 boepd net) (100% gas). Installation of the gas sales meter has started and is expected to be completed during the quarter ending 30 June 2010. The conversion of the United Lands 11-1 well is expected to be finished before the sales meter is installed.

The next drill-ready target at Sorrento Dome is the United Lands 13-1 sidetrack well. This is a sidetrack of an existing shut-in well and targets proved undeveloped reserves. The Company is currently assessing when this drill-ready project can best be placed into the Company's drilling schedule.

Eugene Island 183/184 During the three months ended 31 March 2010, the Company continued to work hard to overcome well performance issues at Eugene Island. The Company estimates that net attributable production from the Eugene Island field for the quarter ended 31 March 2010 averaged 806 boepd (1,304 boepd gross) (56% gas).

The Eugene Island A-8 well continues to flow at approximately 369 boepd gross from the Mid Tex zone. This zone is expected to deplete shortly, at which time the Company will recomplete the well to the T-1 zone. The Company anticipates a substantial improvement to production flow rates from the A-8 well following the recompletion.

As previously reported the Eugene Island A-6 well plugged with sand and remains shut in. The Company plans to perform low cost remedial work on the well to attempt to re-establish production in conjunction with the A-8 recompletion.

During the quarter ended 31 March 2010, the Eugene Island A-7 well, after over 4 months of steady production, plugged with sand and is currently shut in. The Company is working towards recompleting the well further uphole to access reserves in a shallower horizon. It is expected that this recompletion work will be completed within three weeks.

After installation of the compressor, the production rates from the legacy gas-lifted oil wells at Eugene Island (A-1, A-3, A-4, and A-5 wells) has improved, performing at the targeted aggregate gross rate of 300 to 500 boepd (187 to 375 boepd net) (100% oil).

Tags: Leed Petroleum PLC