Leyshon Resources Limited ZJS5 Well At TD; Multiple Potential Gas Pay Zones (1458S)
November 28 2012 - 2:30AM
UK Regulatory
TIDMLRL
RNS Number : 1458S
Leyshon Resources Limited
28 November 2012
LEYSHON RESOURCES LIMITED
28 November 2012
ZJS5 Well: At Total Depth With Multiple Potential Gas Pay Zones
Encountered
Leyshon Resources Limited (AIM/ASX:LRL) ("Leyshon" or the
"Company") is pleased to announce that its wholly owned subsidiary
Pacific Asia Petroleum Limited (PAPL) has completed the drilling
and wire line logging of ZJS5 well.
The well was drilled without safety incident by Great Wall
drilling Company to total a depth of 2,155 meters, then wire line
logged and side wall core samples taken by contractor China
Oilfield Services Limited.
The analysis of the logs and samples is ongoing however initial
results have indicated that about 56.4 metres pay intervals have
been encountered. In particular, around 30.8 metres of the 56.4
metres have exhibited relative high porosity measurements which
indicate that these zones could have the potential to flow gas at
commercial rates.
Following the open hole logging program, a production casing
string has been installed which will allow multiple opportunities
to conduct flow tests on the potential pay zones. Management
expects to conclude testing the first of the potential pay zones by
the end of the year.
The second well in the program, ZJS6, is expected to spud
shortly with well completion scheduled towards the end of the
year.
Both wells are located within approximately 10 kilometres of a
tie-in point on the recently commissioned Lin-Lin pipeline which
supplies the growing demand in Shanxi Province where well head
contracts have recently been struck in the US$ 6 - 7.5 per mscf
range.
PAPL has a 100% interest in the exploration phase of the
Production Sharing Contract (PSC) with PetroChina, which has the
right to buy back a 40% interest at the development stage.
The Company has A$ 47 million in cash and 249 million ordinary
shares on issue (approximately A$ 19 cents per share and 12 pence
per share). It has recently purchased 1.9 million shares at an
average price of A$17 cents per share and has a further 17 million
shares available to be purchased in the current on-market share
buy-back up to September 2013. The cash position does not take into
account interest due or liabilities for the first well.
Managing Director Paul Atherley Commented:
"Frank Fu and his team have celebrated joining Leyshon by
continuing their remarkable recent drilling success in the region
with extremely encouraging logging results from the first well.
We are very much looking forward to the flow test results on the
multiple prospective pay zones over the next few weeks.
The Ordos Basin is the beating heart of Central China, the
world's fastest growing major economy and is quite simply one of
the best places in the world to be discovering gas right now.
Any commercial gas discovery at Zijinshan will be hooked into
one of the nearby pipelines and sold into one of the world's
fastest growing markets for gas."
For further informationplease contact:
Leyshon Resources Limited
Paul Atherley - Managing Director
Tel: +86 137 1800 1914 admin@leyshonresources.com
Seymour Pierce
Jonathan Wright/Stewart Dickson (Nominated adviser)
Richard Redmayne (Corporate broking)
Tel: +44 (0)207 107 8000
Pelham Bell Pottinger
Charles Vivian - Director
Tel:+44 (0)20 7861 3126
James MacFarlane - Account Director
Tel: +65 9450 7574
Background
http://www.leyshonresources.com
Leyshon was on the ground in 2003 when China opened its mining
sector to foreign investment. It has been fully engaged in China
since then and has its main operating office located in
Beijing.
China's latest Five Year Plan emphasizes the planned
urbanisation of a large number of Central China's rural population
into second and third tier cities lifting the urbanisation rate to
51.5% of the overall population.
This will result in significant increases in infrastructure
spending and energy demand. The Company is planning to invest in
high quality energy assets in China to meet this growing
demand.
Managing Director Paul Atherley is an Executive Committee member
of the China Britain Business Council and serves on the European
Union Chamber Energy Working Group.
Great Wall Drilling Company
The Great Wall Drilling Company, which has been contracted by
PAPL to undertake the drilling programme, is a subsidiary of
PetroChina and employs over 30,000 people in 28 countries,
providing services to more than 100 companies all over the world
including many international companies. It owns a fleet of more
than 430 drilling rigs with a rated drilling capacity up to 9,000
metres and provides integrated solutions from well design to
completion in various surface and subsurface conditions.
China Oilfield Services Limited
China Oilfield Services Limited, which has been engaged to
provide technical services to the programme, is the leading
integrated oilfield services provider in the China market. Its
services cover each phase of oil and gas exploration, development
and production. Its four core business segments are geophysical
services, drilling services, well services, marine support and
transportation services.
The technical content of this announcement has been reviewed and
approved by oil and gas consultants RISC Operations Pty Ltd.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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