Leyshon Energy Limited Expansion Of The Interim Testing Programme (5587I)
June 02 2014 - 2:00AM
UK Regulatory
TIDMLEN
RNS Number : 5587I
Leyshon Energy Limited
02 June 2014
2 June 2014
Expansion Of The Interim Testing Programme
Leyshon Energy Limited (AIM:LEN) is pleased to provide the
following update on the Company's activities.
Zijinshan Gas Project
Expansion of the Interim Testing Programme
As previously announced the Company has recently reached an
agreement with its partner, which remains subject to the
finalization of documentation, whereby it will undertake an interim
testing programme on the Zijinshan project before making a decision
whether to commit to the main exploration and appraisal
programme.
Further to more detailed analysis, including the review of
offset data, it has been decided to increase the number of flow
tests to test a minimum of three zones within Well ZJS7 rather than
a single zone as previously planned.
Depending on favourable results from the programme it is planned
to drill and flow test a further well, ZJS8, in a location in the
northern part of the license area. The programme is expected to
commence shortly and will be completed by the end of October this
year at an estimated cost of up to US$4 million excluding overhead
and supervision costs.
Strengthening of the Technical Team
Further to the appointment of the highly experienced Tony Meggs
as Executive Director the technical team continues to be
strengthened with the appointments of Frank Fan as Operations
manager and Lyn Liu as Reservoir Engineer.
As previously advised Tony has more than 30 years of experience
in the oil and gas industry. Most recently he served as an
Executive Vice-President for Talisman Energy, and prior to this was
a Group Vice President of BP, where he served as the Head of Group
Technology until April 2008.
Frank Fan has extensive operations experience with CNPC and was
most recently in charge of an operation with eleven production
rigs. Lyn is an experienced Reservoir Engineer having most recently
worked for international consultancy Tiandi Energy and prior to
that for CNPC.
Frank and Lyn and support staff join Ruby Wang who is a very
experienced in oil and gas geologist having gained extensive
experience with Anadarko and Sinopec in China.
The Company has commenced the recruitment of a senior Chief
Operations Officer to replace Frank Fu who has left the Company to
assume a more senior role with his previous employer.
The expanded technical team is now working closely with
Haliburton Energy Services'shighly regarded Beijing based
Unconventional Technical Team which has extensive experience in
China.
Main Exploration and Appraisal Programme
The US$17 million main programme is an exploration and appraisal
programme which comprises drilling, fracking and flow testing with
the remainder of the costs covering PSC maintenance and geological
costs and collection of additional seismic data some of which may
be 3D.
The programme, which may well be modified to reflect results, is
designed to upgrade the existing resources such that a Chinese
Reserve Report can be obtained.
Acquisition of Oil and Gas Assets in China
As previously advised the Company has been actively pursuing a
number of acquisition and investment opportunities in the oil and
gas sector in China.
There are a number of divestment processes underway for assets
in the region for which the Company has made significant progress
in advancing its interest in the normal course of business. A
number of these discussions are in hand. There is no indication
whether this will lead to a commercially binding transaction.
Chairman John Manzoni commented: "We welcome the new members of
the team and the support of Haliburton and the other consultants in
the execution of this important interim testing programme. We look
forward to keeping shareholders fully informed of results as they
come to hand."
For further information please contact:
Leyshon Energy Limited
Peter Niu Company Secretary
Tel: + 86 10 8444 2882
admin@leyshonenergy.com
Cantor Fitzgerald Europe
David Porter/Rick Thompson (Nominated Adviser)
Richard Redmayne (Corporate broking)
Tel: +44 207 894 7000
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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