Leyshon Resources Limited ZJS7 Well Drilling Completed (1636O)
September 17 2013 - 3:05AM
UK Regulatory
TIDMLRL
RNS Number : 1636O
Leyshon Resources Limited
17 September 2013
Leyshon Resources Limited
17 September 2013
ZJS7 Well Drilling Completed
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 electric logging of well ZJS7, the Company's third well on its
Zijinshan Gas Project on the eastern fringe of the prolific Ordos
Gas Basin in Central China.
Well ZJS7 is located approximately three kilometres to the
northeast of well ZJS5, in the central part of the 380 square
kilometre central depression area. The well was drilled without
safety incident to a total depth of 2,266 metres.
The analysis of logs and samples is ongoing, however initial
results have indicated that multiple potential pay zones have been
encountered, a number of which have exhibited relatively high
porosity measurements. The potential pay zones intersected include
deeper zones which are the main production horizons elsewhere in
the Ordos Basin. A few of the zones have exhibited relatively low
resistivity suggesting that water may be present.
Side core samples have been taken and a decision will be taken
on which zones will be flow tested once the laboratory results and
the final logging interpretation results have been received and
analysed.
Overall the initial results have so far calibrated well with the
recently acquired seismic data. The interpretation of the central
depression area has been confirmed as relatively flat, bounded
between the outline of a large magmatic intrusion in the west and
regional scale faulting in the east, and rising slightly to the
north.
Overall the programme remains at a relatively early stage in the
exploration and appraisal phase of de-risking the project and
accordingly each well will be fully evaluated before proceeding
with the subsequent well which is likely to result in slower
progress in the overall programme than originally planned.
Managing Director Paul Atherley commented:
"The intersection of further potential pay zones in Well ZJS7 is
encouraging and once the laboratory results are received we will
compare them with those from nearby well ZJS5 to determine the next
step in the programme.
An assessment of the rate of progress of the ongoing programme
will be undertaken once we have the full results from the latest
well and we will advise as soon as it has been finalized and agreed
with our partner."
The Company is well placed to carry out its 2013 exploration and
appraisal programme with a strong cash position of US$38 million
(unaudited) held mainly in US dollars. With 249 million ordinary
shares in issue this represents approximately US$ 15 cents per
share, A$17 cents per share and 10 pence per share. The cash
position does not take into account interest due nor all of the
current liabilities.
For further information please contact:
Leyshon Resources Limited
Paul Atherley - Managing Director
Tel: +86 137 1800 1914
admin@leyshonresources.com
Cantor Fitzgerald Europe
David Porter/Rick Thompson (Nominated Adviser)
Richard Redmayne (Corporate broking)
Tel: +44 (0)207 107 8000
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 overtook the United States as the world's largest energy
consumer in 2010, however on a per capita basis it still only
consumes about 25% of the energy of the most developed nations. The
government has recently described the country's increasing
dependence on foreign energy sources as one of the "Grave
challenges to energy security".
Its main policy response to this challenge is the rapid
development of domestic unconventional gas resources, with a
particularly focus on the Eastern Flank of the Ordos Basin. The aim
is to rapidly increase the output of unconventional gas from the
currently very low levels to an annual production of 6.5 billion
cubic metres by 2015.
Leyshon, along with its partner China National Petroleum
Corporation, is one of small number of companies exploring for and
looking to develop unconventional gas production in the Eastern
Flank of the Ordos Basin.
The qualified person, Frank Fu, who has reviewed this update,
has 21 years' experience in the oil & gas industry and is a
member of the Society of Petroleum Engineers.
Frank is currently the Chief Operations Officer for the Company
based in the Beijing office. He holds a BS Geology and Exploration
in Shanxi Mining College in Taiyuan, Shanxi. He joined the Company
in 2012, having spent the majority of his career at Conocophillips
in China and on its overseas gas and oil projects.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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