Leyshon Energy Limited Update on Current Activities (2401S)
22 Setembro 2014 - 6:29AM
UK Regulatory
TIDMLEN
RNS Number : 2401S
Leyshon Energy Limited
22 September 2014
22 September 2014
Update on Current Activities
Leyshon Energy Limited (AIM:LEN) is pleased to announce that the
Company is well advanced in the interim testing programme at the
Zijinshan gas project located in the Ordos Basin in central China
and is actively progressing its interest in a number of acquisition
opportunities in the region.
Zijinshan Gas Project - Interim Testing Programme
Flow testing of three zones in Well ZJS7 is underway with each
of the three zones flowing flammable gas with methane contents of
up to 99% recorded.
Flows in all zones tested have so far been discontinuous and
work is ongoing to establish more consistent gas flows. Results
from ZJS7 indicate water production along with the gas production
in the tested zones; this water production could be inhibiting gas
flow and preventing us from establishing commercial flow rates. We
are continuing to test the upper zone and evaluate the results.
In addition similar results are being achieved on one zone in
Well ZJS5. This is the same zone as the upper zone being tested in
Well ZJS7. Test work is ongoing and results are being
evaluated.
There has been no test work so far on Well ZJS6. Testing of this
well will be largely dependent on the results from individual zones
in Wells 5&7.
These results so far are below our expectations for this area of
the field. The results, along with our understanding of well
performance in nearby fields, are however sufficiently encouraging
to proceed with drilling an additional exploration well, ZJS8.
Discussions on the location and design of this well with the
Company's partner have commenced.
The interim testing programme now has an estimated cost of
around US$4 million and, depending on the timing and results from
Well ZJS8, is expected to be completed by the end of this year. The
cost includes the drilling and testing of Well ZJS8.
The purpose of the interim testing programme is to evaluate the
project with a view to making a decision whether to commit to the
US$17 million main exploration and appraisal programme which is
scheduled to commence in 2015.
The main programme is an exploration and appraisal programme
which comprises drilling, fraccing and flow testing multiple wells
with the remainder of the costs covering PSC maintenance and
geological costs. The number of wells to be drilled will be
determined based on results progressively achieved and will to a
large extent determine the overall expenditure on the
programme.
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.
The Company has finalized the documentation related to the
interim testing programme and is pleased to advise that the
Exploration Licence has been renewed until 7 May, 2016.
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.
The Company has made three bids for assets on a fully funded
basis. In each case the Company was either outbid or the
transaction failed to complete due to circumstances outside the
Company's control.
The Company is in active discussions with potential vendors of
assets in the region in line with the acquisition strategy
previously outlined and in the normal course of business. There is
no indication whether these discussions will lead to a commercially
binding transaction.
The Company has received a number of requests for updates on the
progress on its acquisition activities. The Company has been
advised by its Nomad that the circumstances under which the Company
is able to make an announcement in relation to a transaction, ahead
of the transaction, are very limited under AIM rules.
Cash, Buy Back and Director Purchases
The Company has US$26 million cash on hand, this does not
however take into account outstanding liabilities for the work in
hand and previous creditors estimated around US$5 million.
The Buy Back approved at the AGM has not yet commenced. Once
commenced there will be daily announcements on the number of shares
purchased.
As previously announced, Non-Executive Director Kim Howell has
purchased 300,000 shares in line with the commitment to purchase
shares in the Company made by Directors at the Annual General
Meeting. Further purchases by Directors will be limited by Close
Periods and during those periods when the company is actively
involved in transactions during which purchases by Directors are
not permitted.
Executive Director Tony Meggs will be presenting an update on
the Company's activities at the Proactive Investors One2One
Investor Forum on Thursday 25th September at the Chesterfield
Hotel, 35 Charles Street Mayfair W1J 5EB
Chairman John Manzoni Commented: "The Interim Testing Programme
has confirmed the presence of gas in the target zones and has given
us the confidence to drill Well ZJS8. In addition there continues
to be very encouraging results being reported in adjacent
operations which suggest that we remain at an early stage in fully
evaluating the 700 square kilometre Zijinshan project. The
information we have gained from testing these two wells puts us in
a strong position to locate and design Well ZJS8."
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
The Qualified person, Ruby Wang, who has reviewed this update,
has 15 years experience in the oil and gas industry and is a member
of the Society of Petroleum Engineers. She holds a Master degree in
Petroleum Engineering from China University of Geosciences. Ruby is
currently the senior Geologist and is based in the Beijing office.
She joined the Company in 2013, prior to this she spent majority of
her career with Anadarko Petroleum Corp in China.
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGCGDCRDDBGSD
Leyshon Energy (LSE:LEN)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Leyshon Energy (LSE:LEN)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024