Shares of China-focused unconventional gas explorer, Leyshon Resources (LRL), shed 24 per cent after tests showed the company’s ZJS5 tight gas well could not produce commercial flow rates without fracking. It was hoped that at least one of two previously identified potential pay zones could flow without the need for stimulation, but that is not the case.
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Frack testing will now proceed as originally planned, but the practice will have to wait until the spring or at least until after the Chinese New Year in February. The company’s second well, ZJS6, is progressing well and is currently at a depth of 800 metres with a target depth of 2,320 metres. Wireline logging of the well is scheduled for mid to late January.
