Leyshon Resources Finds Gas Layer in Central China Well

Leyshon Resources has completed the drilling and encountered gas at ZJS5 well in central China.

The second well in the program, ZJS6, is expected to spud shortly with well completion scheduled towards the end of the year.

Both wells are located within approximately 10 kilometres of a tie-in point on the recently commissioned Lin-Lin pipeline which supplies the growing demand in Shanxi Province where well head contracts have recently been struck in the $6 - 7.5 per mscf range.

The company has a 100% interest in the exploration phase of the Production Sharing Contract (PSC) with PetroChina, which has the right to buy back a 40% interest at the development stage.