Leni Gas & Oil plc (LGO) notes update from Leed Petroleum (LDP), confirming LDP as highest bidder on two leases in the Central Gulf of Mexico Minerals Management Services (MMS) Lease Sale 208.

The two blocks are adjacent to blocks subject to the Scouting Agreement that exists between Leed Petroleum and Byron Energy Pty. Ltd. (Byron). As such, these blocks are now subject to an area of mutual interest agreement between LDP and Byron which grants Byron the right to acquire up to 25% of LDP's working interest in both blocks.

LGO has an indirect interest through its 28.94% holding in Byron Energy Pty Ltd (Byron) approximate to an effective net working interest of 8% in the Gulf of Mexico Assets.

David Lenigas, Executive Chairman, commented, "Today's announcement regarding the two blocks in the Gulf of Mexico is another significant step for Leni Gas & Oil as it materially increases our asset portfolio and further endorses the potential of our Gulf of Mexico acreage."

"This is another significant step forward for LGO, as we continue to increase production across our portfolio in the US Gulf of Mexico, Hungary, Spain and Trinidad."

Tags: Leni Gas & Oil Plc