Leyshon Energy to undertake interim testing program on Zijinshan project
Leyshon Energy to undertake interim testing program on Zijinshan project'>project
BEIJING -- Leyshon Energy has recently reached an agreement with its partner, which remains subject to the finalization of documentation, whereby it will undertake an interim testing program on the Zijinshan project'>project before making a decision whether to commit to the main exploration and appraisal program.
Further to more detailed analysis, including the review of offset data, it has been decided to increase the number of flow tests to test a minimum of three zones within Well ZJS7 rather than a single zone as previously planned.
Depending on favourable results from the program it is planned to drill and flow test a further well, ZJS8, in a location in the northern part of the license area. The program is expected to commence shortly and will be completed by the end of October this year at an estimated cost of up to $4 million excluding overhead and supervision costs.
Further to the appointment of Tony Meggs as Executive Director, the technical team continues to be strengthened with the appointments of Frank Fan, as operations manager, and Lynn Li, as reservoir engineer.
Meggs has more than 30 years of experience in the oil and gas industry. Most recently he served as an Executive V.P. for Talisman Energy, and prior to this he was a Group V.P. of BP, where he served as the Head of Group Technology until April 2008.
Fan has extensive operations experience with CNPC and was most recently in charge of an operation with eleven production rigs. Lyn is an experienced reservoir engineer having most recently worked for international consultancy Tiandi Energy and prior to that for CNPC.
Fan and Li and support staff join Ruby Wang who is an experienced oil and gas geologist having gained extensive experience with Anadarko and Sinopec in China.
The company has commenced the recruitment of a senior CEO to replace Frank Fu who has left the company to assume a more senior role with his previous employer.
The expanded technical team is now working closely with Haliburton Energy Services’s highly regarded Beijing-based Unconventional Technical Team which has extensive experience in China.
The $17 million main program is an exploration and appraisal program which comprises drilling, fracing and flow testing with the remainder of the costs covering PSC maintenance and geological costs and collection of additional seismic data some of which may be 3D.
The program, which may well be modified to reflect results, is designed to upgrade the existing resources such that a Chinese Reserve Report can be obtained.
The company has been actively pursuing a number of acquisition and investment opportunities in the oil and gas sector in China.
There are a number of divestment processes underway for assets in the region for which the company has made significant progress in advancing its interest in the normal course of business. A number of these discussions are in hand. There is no indication whether this will lead to a commercially binding transaction.
Chairman John Manzoni commented: “We welcome the new members of the team and the support of Haliburton and the other consultants in the execution of this important interim testing program. We look forward to keeping shareholders fully informed of results as they come to hand.”
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