(MENAFN- ProactiveInvestors - Australia) China-focused uncoventional gas group Leyshon Resources (LON:LRL, ASX:LRL) had over US$45mln of cash at the end of its latest half year to pay for its accelerated exploration programme.
The group recently began testing the ZJS6 well on the Zijinshan gas project in China, which will be followed by a test on the ZJS5 well. Leyshon wants to establish commercial flow rates from the hydrocarbon pay zones selected at the wells.
The company has committed to drill three more wells on the Zijinshan unconventional gas project during 2013, with contingent plans to drill a further three wells if the first results from the first three wells are satisfactory.
Zijinshan is on the eastern fringes of the prolific Ordos Basin in central China. The total estimated cost of the 2013 exploration and appraisal programme is US$20 mln.
Leyshon posted a net loss of US$4.2mln (US$3.1mln) in the half year to December.Â
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.