Leyshon Resources intersects multiple potential pay zones

Leyshon Resources, a China-focused gas exploration outfit, said Wednesday that its wholly owned subsidiary, Pacific Asia Petroleum, has delivered positive initial results from its second well on its Zijinshan Gas Project on the eastern fringe of the prolific Ordos Gas Basin.

Leyshon Resources, a China-focused gas exploration outfit, said Wednesday that its wholly owned subsidiary, Pacific Asia Petroleum, has delivered positive initial results from its second well on its Zijinshan Gas Project on the eastern fringe of the prolific Ordos Gas Basin.

The firm said that the initial results have indicated that about 80 metres of cumulative potential pay interval has been intersected across 15 potential pay zones.

Managing Director Paul Atherley explained: "This is about the best outcome we could have hoped for with the first two wells encountering over 135 metres of cumulative pay intervals within the targeted formations. The exploration programme to date has exceeded our initial expectations and as a result we now have multiple zones within these intervals to test for commercial gas flows.

"We continue to see significant potential in the Zijinshan Project, which underpins the expanded exploration and appraisal programme for 2013.

"With a healthy cash balance and an excellent technical team with a growing track record in the region, we are well placed to unlock value from this emerging opportunity, located in the heart of China, one of the fastest growing markets for gas in the world."

The company has installed a production casing string which it said will provide multiple opportunities to conduct flow tests on selected potential pay zones.

In consultation with the production sharing contract partner, PetroChina, one of China's major oil and gas companies, and the company's technical advisor, RISC, analysis of the side wall core samples and other information will be used to select which of the zones in each of the wells will be frack tested and if warranted, flow tested.

The purpose of these tests, which are expected to commence in mid-March and continue until late April or early May, is to determine whether commercial flow rates can be established from one or more potential pay zones in each well, the firm explained.

The share price rose 6.67% to 14p by 08:59.

NR

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Beating inflation takes more luck than skill – but are we about to get lucky?
Inflation

Beating inflation takes more luck than skill – but are we about to get lucky?

The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank…
26 Sep 2022
The pick of this year's best-performing investment trusts
Investment trusts

The pick of this year's best-performing investment trusts

Market conditions haven’t been easy, but these investment trusts have delivered strong growth, says David Stevenson.
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022