Leyshon Resources Begins Work on Ordos Basin Gas Project

Leyshon Resources’ wholly owned subsidiary, Pacific Asia Petroleum Limited (PAPL), has commenced the previously announced $20 million accelerated exploration and appraisal programme on its Zijinshan Gas Project, located in eastern Ordos Gas Basin in Central China ahead of schedule.

The programme is currently two weeks ahead of schedule with over 150 kilometres of the planned 300 km seismic lines already surveyed, the company said.

As previously announced drilling at both ZJS5 and ZJS6 had intersected multiple potential pay zones, with strong initial results indicating that ZJS5 encountered nine potential pay zones with a total thickness of 56 metres and ZJS6 encountering 15 potential pay zones with a total thickness of 80 metres.

Both wells ZJS5 and ZJS6 are part of an initial programme designed to explore and test the potential for commercial gas production in a highly prospective and unexplored 380 sq. km central depression area that appears to demonstrate good continuity with the neighbouring Sanjiaobei discovery.

Following the encouraging results from the programme to date the PSC partners have accelerated the 2013 exploration and appraisal programme, with a total estimated cost of up to US$20 million, with the main objective to define a resource sufficient to delineate and submit a Chinese Reserve Report (CRR).

The main components of the accelerated 2013 programme comprise drilling up to six wells. Three of which are committed wells and the additional three subject to results and PSC partner agreement. It also includes flow testing of wells ZJS 5 & 6 and wells ZJS 7-12 as they are completed. The duration of testing will be dependent on the success of the tests and in particular whether long term flow testing will be required. 

The company will also acquire 300 km 2D seismic to identify additional well sites and generate data for the CRR report submission.