OREANDA-NEWS. August 01, 2013. Leyshon Resources (ASX: LRL) has spudded the ZJS7 well at its Zijinshan Gas Project on the eastern fringe of the prolific Ordos Gas Basin in Central China.

The well targets the same potential pay zones as those intersected in well ZJS5, where one of the zones flowed gas at a rate of 160,000 cubic feet per day.

ZJS7 is the first of three wells to be drilled as part of this year’s accelerated exploration and appraisal program.

It was located based on the interpretation of the recently acquired 318 kilometres seismic survey and results from ZJS5.
  
A further three wells are planned to be drilled based on favourable results from both drilling and testing, and on partner approval.

All wells are expected to be flow tested in the event they intersect zones that warrant testing.

The company is well funded to advance exploration with USD40 million in cash.

Leyshon's subsidiary Pacific Asia Petroleum has a 100% interest in the exploration phase of the Production Sharing Contract with PetroChina, which has the right to back into a 40% interest at the development stage.