Leyshon Resources Begins Drilling at Zijinshan Block

Leyshon Resources Limited has commenced drilling at the 708 square kilometre 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.  

The three well programme will test for unconventional gas over a 600 metre interval to a depth of approximately 2.4 kilometres, the company said.

The first two wells are expected to be completed by the end of November with completion of the third expected early in the new year. The total cost for drilling, logging, casing, fracking and flow testing the three wells is estimated at around $5 million. 

The wells are located within 10 kilometres of a tie in point on the Lin-Lin pipeline which supplies the growing demand in Shanxi Province where well head contracts have recently been struck in the $6 - 7.5 per mscf range, the company added.