News

November 24, 2009

Leed Petroleum’s Shares Are Selling at a ‘Significant’ Discount to Total NAV And A Discount to Core NAV According to Broker Brewin Dolphin

AIM-listed Leed Petroleum is a Gulf of Mexico (Gom) focused E & P company with a diverse and extensive acreage position covering a total of 308 km2. The operating strategy is that it is not a high risk explorer as such but a company concentrating on enhancing existing field reserves from appraisal and development activity, with perhaps some simultaneous low risk exploration upside from additional horizons being targeted from appraisal drilling wells.

The GoM region is estimated to contain 52 per cent of the US Outer Continental Shelf’s ‘yet to be discovered’ oil and 55 per cent of the country’s natural gas reserves. Whilst much of these reserves are in the deepwater areas of the Gulf in which Leed is not a player, the GoM is exceedingly fragmented enabling smaller companies like Leed to access the lower risk shallow water which have the potential to develop upside.

Junior, well connected companies taking advantage of opportunities in the...