Leyshon Energy (LON:LEN) is an AIM listed resource company focused on capitalising form the energy market in China. Leyshon Energy are exploring 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.
Paul Atherley the Managing Director previously noted that the wells drilled to date within the Ordos project are located within approximately 10 kilometres of a tie-in point on the Lin-Lin pipeline which supplies the growing demand in Shanxi Province. The Shanxi Provincial Government reported in 2012 that gas demand had increased by 38% and was the regarded as the fastest gas consumption increase in China. Its regional gasification programme is designed to increase demand by over 2.5 times current levels and is one of the most advanced in China. With installed gas pipelines now totalling over 3,000 kilometres with a total capacity of over 10 bcm per year.
Following the demerger of Leyshon Energy from Leyshon Resources, Paul Atherley the Leyshon Energy Managing Director has taken time out to provide an update including, the management team and the Ordos project and work programme.
Q1. Briefly, could you set the scene with a short background on Leyshon Energy and its management team?
Leyshon Energy was demerged from Leyshon Resources and listed on AIM in January of this year. It has a very strong Board led by Chairman John Manzoni (ex BP,Talisman), Tony Meggs( ex BP), Kim Howell (ex BG Group) and Paul Atherley as MD. The Company has approx. 6 pence per share in cash and has just commenced a testing programme on its Zijinshan gas project in the Ordos Basin.
Q2. Could you briefly explain the Ordos gas project?
The Zijinshan gas project lies on the eastern flank of the Ordos basin one of the world’s most prolific hydrocarbon producers. China is short of energy and especially energy that can offset coal consumption for electricity production. China is entering a Golden Age of Gas as the government provides strong incentives to develop domestic gas to reduce import dependency and as a bridge to a low carbon future.
Q3. Could you explain the work programme for the Ordos project?
Three wells have been drilled to date and over 250 km2 of seismic data captured. A review of these results and correlation with…
