Leyshon Resources reports drilling success in China

China-focussed gas exploration company Leyshon Resources has published an update on its drilling activities, revealing the discovery of 'multiple potential pay zones'.

The company stated that its wholly-owned subsidiary, Pacific Asia Petroleum (PAPL), had completed the drilling and wire line logging of two wells known as "ZJS5" and "ZJS6". This was in addition to flow testing of ZJS5 on its newly acquired Zijinshan Gas Project on the eastern fringe of the Ordos Gas Basin in Central China.

Leyshon Resources stated that drilling at both ZJS5 and ZJS6 had intersected multiple potential pay zones, with initial results indicating that ZJS5 had encountered nine potential pay zones with a total thickness of 56 metres. The ZJS6 well encountered 15 potential pay zones with a total thickness of 80 metres.

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A flow test without stimulation was conducted on two potential pay zones in ZJS5 which confirmed that fracking would be required to produce commercial gas flows.

Managing Director Paul Atherley commented: "We are very encouraged by the positive progress we have made to date which has exceeded our initial expectations for the Zijinshan Gas Project.

"We have made the decision to accelerate the 2013 programme with plans to drill and test six wells, capture 300 kilometres of seismic data with the aim of delineating a resource by the end of the year."

MF