Leyshon Resources to Buy Shale Assets in Ordos Basin

Leyshon Resources Limited is close to acquiring a company which holds a 100% interest in the Zijinshan Production Sharing Contract located on the eastern fringe of the prolific Ordos Gas Basin in Central China. 

Zijinshan Gas Project has in place estimates in the range 1 to 3.8 Trillion Cubic Feet (tcf).   

Under the proposal Leyshon will acquire a 100% interest in Pacific Asia Petroleum Limited (PAPL) from Houston based CAMAC Energy Inc. The final decision is expected on July 27.

PAPL has already completed four wells under the Zijinshan Production Sharing Contract, two of which have been cased, and acquired 160 kilometres of 2 D seismic data which has been used to identify several major gas exploration targets. 

The initial exploration focus will be on drilling several new wells to test extensions to nearby major shale gas discoveries and production testing the cased wells.

The Zijinshan Production Sharing Contract is with one of China’s major oil and gas companies which has retained the right to buy back a 40% interest in the contract at the completion of the exploration phase and to jointly fund the project into production.