Leyshon Energy Updates on Zijinshan Gas Project in China's Ordos Basin

Leyshon Energy Limited provided Monday the following update on the Company's activities at the Zijingshan gas project in China's onshore Ordos Basin.

Zijinshan Gas Project

Expansion of the Interim Testing Program

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 program on the Zijinshan project before making a decision whether to commit to the main exploration and appraisal program.

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 favorable results from the program it is planned to drill and flow test a further well, ZJS8, in a location in the northern part of the license area. The program is expected to commence shortly and will be completed by the end of October this year at an estimated cost of up to $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.


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