Source: Leni Oil & Gas
Leed Petroleum has notified the Leni Oil & Gas that with immediate effect it has temporarily suspended production from the Eugene Island -184 ("EI-184") and Ship Shoal-201 ("SS-201") platforms where Leni 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.
Leni 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, 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.
Leni continues to monitor the situation closely and has notified Leed and UniCredit of its wish to see production operations restored without delay.