Leyshon Resources (LRL) has started drilling a third exploration well at its Zijinshan unconventional gas project in central China. The first well met with modest success but a second well drilled to the south was largely a failure, so continued work on the project will probably hinge on the success of the latest well, labelled ZJS7. It is being drilled about three kilometres north of the first well, and preliminary results are expected in early September.
IC TIP:
Buy
at
11.80p
The company has a strong cash position of roughly $40m (£26m). It spent around $2.7m in the six months to 30 June, but adverse currency adjustments saw another $4.4m wiped off the books.
