Unconventional gas explorer Leyshon Resources (LRL) has discovered several large gas columns in an extension of a tight gas field in central China's Ordos Basin.
The company's maiden exploration well, ZJS5, encountered 56.4 metres of gas intervals on its way to reaching a target depth of 2,155 metres. At least 30.8 metres of this had high porosity readings, suggesting multiple zones that could have the potential to flow gas at commercial rates. The company has installed production casing that will allow it to conduct flow tests shortly, with testing of the first potential payzone expected to be concluded by the end of the year.
While the results are still preliminary, this is a very positive start for Leyshon, as any production wells could quickly and cheaply be tied into the Lin-Lin pipeline a mere 10kms away. The company expects to spud its second well, ZJS6, shortly.
Leyshon's managing director, Paul Atherley, told Investors Chronicle: "You can infer from the words in the announcement that we feel very positively about the discovery. We've cased the well, which gives you a clue that we think there's a reasonable chance of the gas flowing successfully."
Speculation about the results drove Leyshon's share price to a high of 28.25p last week from 11p two weeks ago, before the company's shares were suspended from trading in both Australia and London. They've since fallen back to 21p after trading resumed.
