The share price of Leyshon Resources a China-focused gas explorer, has shot up today on anticipation of the first drilling results at its Zijinshan block in China.
Trading in the company's shares were suspended on the Australian Stock Exchange ahead of an expected announcement of drilling results some time before Monday, but continue to trade on London's AIM market.
It's not the first time these shares have rocketed. On November 12th, following five days during which the price rose from 11p to 15.5p the company issued a statement saying it was "not aware of any reason that would lead to such a movement in the company's share price".
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On November 1st, Leyshon Resources, had announced the start of drilling at the 708 km2 Zijinshan block located on the Eastern flank of the prolific Ordos Basin, China's second largest and one of the world's major gas producing basins.
It had designed an initial three well programme to test for gas in similar formations over a 600-metre interval to a depth of approximately 2.4 kilometres.
The first of two wells were expected to be completed by the end of November with completion of the third expected in the New Year. The total cost for drilling, logging, casing, fracking and flow testing the three wells is estimated at around $5m.
CM
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