Leyshon, CNPC Extend Zijinshan PSC Exploration Period

Leyshon Resources has reached an agreement with China National Petroleum Corp. (CNPC) to extend the exploration period at the Zijinshan production sharing contract at the Ordos Basin in Central China to the end of 2017. The PSC is valid for 30 years and expires in 2038. 

Leyshon, through its wholly owned subsidiary Pacific Asia Petroleum has embarked upon a $20 million accelerated exploration and appraisal program for the gas project, where Leyshon has a 100% interest in the exploration phase of the PSC, Proactive Investors Australia said citing a company statement.

CNPC has the right to back in to a 40% interest at the development stage.

The main objective of the 2013 work program, started ahead of schedule, is to define a resource sufficient to delineate a third party independent resource by the end of this year and to submit a Chinese Reserve Report by middle of next year.

The work program includes drilling up to six wells, conducting eight flow tests and acquiring 300 kilometres of 2D seismic data.