Leed Petroleum has conditionally placed and has received conditional subscription applications for 400 million new ordinary shares in the Company at 5 pence per new ordinary share, to raise £20 million (before expenses) (the “Fundraising”).

The net proceeds of the Fundraising will be used to progress the development of the Company’s oil and gas assets and to pay down part of its outstanding debt owing to HVB.

The work plan in respect of the Company’s Gulf of Mexico assets includes drilling and completing four development wells at Grand Isle 95, Ship Shoal 201 and South Marsh Island 8, sidetracking a well at Sorrento Dome, recompleting a well and installing a natural gas compressor at Eugene Island and refurbishing facilities at two fields.

The Company has entered into a commitment letter with its lender, HVB (as defined below), in respect of certain amendments to its existing debt facility and the provision of a new term facility. The commitment by HVB is subject to the finalisation of binding legal documentation and the Directors believe that this documentation will be agreed prior to the date of the General Meeting. The Fundraising is conditional, inter alia, on: (i) the passing of the Resolutions at the General Meeting; (ii) the execution of binding legal documentation (to the satisfaction of the Brokers) in respect of the Amended HVB Facility and the Amended HVB Facility becoming unconditional in all respects other than as to completion of the Fundraising; and (iii) Admission.

The Company is to seek Shareholder approval for the Fundraising at a General Meeting to be convened for 1 p.m. on 23 November 2009 and to be held at the offices of K&L Gates LLP, 110 Cannon Street, London EC4N 6AR.

Tags: Leed Petroleum PLC