Leyshon Resources suspended ahead of drilling udpate

published 23 November 2012

Following a massive share-price jump in Leyshon Resources' shares yesterday, the stock was suspended from trade on Friday ahead of some expected drilling results next week.

The stock soared from 14.13p to 24.13p on Thursday, up 71%, on anticipation of the first drilling results at its Zijinshan block in China.

The firm said in a press release: "The company has received preliminary information in connection with the drilling results which is subject to review.

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"It is expected that an announcement will be released prior to the commencement of trading on Monday, 26 November 2012."

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.