Leyshon Resources Test, Drills Wells in Ordos Basin

Leyshon Resources Limited’s wholly owned subsidiary Pacific Asia Petroleum Limited (PAPL) has commenced a flow testing program of the ZJS5 well and drilling of the ZJS6 well in Ordos Basin.

ZJS5 was successfully drilled to a total depth of 2,155 meters. The second well in the current three well program, ZJS6, has commenced drilling and completion is scheduled for late January 2013.  The well is located seven kilometres to the south west of ZJS5 and close to Zijinshan Production Sharing Contract with the neighbouring Sanjiaobei gas discovery.

All three wells of the current program 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.

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