Leyshon Resources begins exploration at China gas project

Leyshon Resources shares surged Monday after the company announced it kicked off further operations at the Zijinshan gas project in Central China ahead of schedule.

Leyshon Resources shares surged Monday after the company announced it kicked off further operations at the Zijinshan gas project in Central China ahead of schedule.

A $20m accelerated exploration and appraisal programme at the project, located on the eastern fringe of the Ordos gas basin, began following positive results from drilling at the ZJS5 and ZJS6 wells which intersected multiple potential pay zones.

Contactors were mobilised to the projects and approvals were granted, enabling an immediate start to operations two weeks ahead of schedule.

The 2013 programme includes drilling of up to six weeks, flow testing of wells ZJS5 and 6 and the acquisition of 300km 2D seismic to identify additional well sites.

More than 150km of the 300km seismic lines have already been surveyed.

Flow tests to determine whether commercial flow rates can be established from selected pay zones are expected to begin mid-March as planned, depending on the weather.

"We are very pleased with the rapid progress we have made to date which is due in large part to experience and relationships of our operational team who have given us a flying start to a busy six or seven months," said Managing Director Paul Atherley.

"We are fully funded with a solid base in place following the positive results from JS5 and ZJS6. Following these encouraging results we've brought forward the 2014 exploration and appraisal programme and will be reporting on the flow testing of the first two wells, the results from the six new wells along with the interpretation of 300km of seismic data."

Shares rose 9.76% to 16.88p at 10:07 Monday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021