LEPCO plc
9 May 2000
Update on UK Southern Gas Basin Activity
In November 1999 the Company announced that it had completed
a reorganisation of its UK Southern Gas Basin interests
acquiring effectively all of the equity on block 47/9c
(subject to small carried interests) and, for the first
time, becoming an offshore operator in the UK.
Block 47/9c contains a significant gas prospect close to the
southern part of the Easington Catchment Area. Phase I of
this project, including the Mercury field on the immediately
adjacent block 47/9b and operated by BG plc, recently
commenced production.
Having reviewed previous activity on block 47/9c and its
prospectivity, the Company is now pleased to announce that
it has reached agreement for further evaluation of block
47/9c in preparation for a possible farm-out and appraisal
programme.
Agreement has been reached with Montrose Industries Limited
('Montrose'), a company controlled by Dr Richard Stabbins
(formerly Exploration Director of Goal Petroleum plc) for
Montrose to earn a 5% equity interest in the block in return
for them providing the services of Dr Stabbins to manage the
evaluation programme. The assignment to Montrose is subject
to the consent of the Secretary of State for Trade and
Industry.
A further agreement has also been made with IKODA Limited
('IKODA') to conduct an evaluation of 3-D seismic and other
data on the block and, as part of these contractual terms,
IKODA has agreed to accept part of their payment in ordinary
shares in the Company. Accordingly, an application has been
made for the listing of 70,000 ordinary shares of 10 pence
each being issued to IKODA.
The Company is also continuing negotiations and discussions
on a number of opportunities to acquire producing oil and
gas interests in both the UK and the
Netherlands.
For further information contact:
Peter Wilde Managing Director, LEPCO plc 020 7233 5245
Chris Callaway Beeson Gregory 020 7488 4040