Leyshon Resources (LON:LRL) the dual listed (ASX:LRL/AIM:LRL) China focused resource company, has recently announced that the first well of a three well drilling campaign is due to reach its total depth by the end of November. Operating through its recent acquisition Pacific Asia Petroleum Limited, which Leyshon acquired in August for US$ 2.5 million in cash and the issue of 10 million fully paid ordinary shares, the company is focused on the 708 km2 Zijinshan block located on the Eastern flank of the prolific Ordos Basin, which is China's second largest and regarded by Leyshon as one of the world's major gas producing basins. 
Leyshon Resources who operate from their Beijing base, was set up by its Managing Director Paul Atherley in 2003 as a direct result of China opening its mining sector to foreign investment, and is hoping to capitalise on the urbanisation of a large number of Central China's rural population into second and third tier cities. The hope for Leyshon is that this urbanisation move will increase the capital infrastructure spending and in tandem the energy demands will also be a by-product of this demographic change which could see the urbanisation rate lifted to 51.5% of the overall population under China's latest Five Year Plan. 
The new operations management team led by COO Frank Fu, has 20 years’ experience with ConocoPhillips in China, and successfully drilled and appraised the nearby multi-Tcf Sanjiaobei and Linxing discoveries. Pacific Asia Petroleum Limited has 100% interest in the project during the exploration phase of the Production Sharing Contract with PetroChina holding a right to buy back a 40% interest at the should the project reach the development stage.
Leyshon Resources have other pursuing interests including a thermal coal project located in the Western Chinese province of Xinjiang, however due to the recent 30% fall in domestic thermal coal prices, the near term economics and potential financing has been impacted, Leyshon management are still believed to be monitoring developments at this project to assess whether there would be an attractive entry point for the Company. Also of interest to Leyshon Resource shareholders is the Mt Leyshon project, however, although the ball mill scats drilling and preliminary test work programme has indicated that the project is viable, it requires significant capital investment and is not viewed as…
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