Leed Petroleum, an oil and gas exploration and production company focused on the Gulf of Mexico, has signed a turnkey contract with Applied Drilling Technology to drill the Ship Shoal 201 A-6 well and anticipates that the well will be spudded shortly.

The A-6 well will target one proved undeveloped sand containing audited gross 2P reserves of 2,537 mboe (85% gas) and test two exploratory objectives. The company will own a 100% working interest and an 80.2% net revenue interest in the well.

The company has acquired the Ship Shoal 202 A Platform and regulatory approval to reuse the platform has been granted. The Ship Shoal 201 A-6 well will be drilled from this platform in order to expedite commencement of anticipated production.

The Ship Shoal 201 lease was acquired in the 2007 Central Gulf of Mexico Mineral Management Service Lease Sale 205 and is located 125 miles offshore, southwest of New Orleans, Louisiana in approximately 102ft of water.

The company said that it has made good progress towards returning the United Lands 14-1 well to production during the first quarter of 2010. A third party has commenced work to install a sales gas meter, and regulatory approval has been granted to convert the non-productive United Lands 11-1 well to a salt water disposal well.

The United Lands 14-1 well was tested for an extended four day period at a stable but restricted flow rate of 1.3mmcfd (217boepd), 1785bwpd, 644ftp on a 32/64in choke. Therefore, with minimal capital outlay, the company has decided to re-establish production from the tested zone.

The company plans to commence drilling of the United Lands 13-1 Sidetrack well during this calendar year when this drill-ready project can best be slotted into the company’s drilling plans.

The company estimates that net attributable production to the company for the quarter ended December 3, 2009 averaged 1,152boepd. The lower average daily production for the period was primarily attributable to downtime associated with installation of a higher-capacity natural gas compressor at Eugene Island.

Enhancement activities remain ongoing and it is expected that the work currently being undertaken will result in improvements to production in subsequent periods.