Very good news today - confirms my best hopes - moving north

LOL lizard, you seem to be getting sucked into the ramp.

So they purchased this license from Camac for less than 3m GBP equivalent and then overnight it has an NPV of 1 billion dollars.

Wow - they really can get blood from a stone.

Or are you missing the word "potential"...............


If I buy a lottery ticket I have a potential net worth (if it wins) of many millions of pounds............... You want to buy shares in my 1 GBP lottery ticket, they are only 10 pounds each, by lots of shares in it from me, potential NPV is many millions of pounds..................

LOL. CAMAC seemed happy enough to take a significant stake in LRL as part of the agreement.

And have they sold those shares ? ;)

News out in Oz.

Nothing much, just spud and testing started.

Down over 3.5% in Oz on the news.

http://finance.yahoo.com/q?s=LRL.AX

.

The news contains nothing new but the reason its over 3.5% down in Oz is likely imo to what appears to be a 4 week delay to the next well.

In todays RNS in Oz they say ( http://www.asx.com.au/asxpdf/20121210/pdf/42btn203h3h6rn.pdf )

...........The second well in the current three well program, ZJS6, has commenced drilling and completion is scheduled for late January 2013......


But only a few days back they said ( http://www.investegate.co.uk/leyshon-resources-(lrl)/rns/zjs5-well-at-td-multiple-potential-gas-pay-zones/201211280730041458S/ )

....The second well in the program, ZJS6, is expected to spud shortly with well completion scheduled towards the end of the year.....


So what is happening, why a few days ago was the next well due for completion end of the year and now its end January ? All looks a bit strange........

Believe so. LRL have $50m in cash and this three well drill campaign will cost just $5m.
two wells spudded, one flow testing potential pay zones, results due shortly.

This should be re-named RAMPING RESOURCES

All imvho

who's ramping?, take it you have seen the Sinogas results today?

Bad news out - BIG BIG FALL COMING.

Now, let me say again.

Each well, if its able to flow (and this license area is nothing like the Sino area, this area is VERY TIGHT) and ITS A BIG IF, will only be able to DRAIN a very small area.

CAMAC (who called this correct flogging the licenses of for a small about to LRL imo) estimated that for all the gas in the whole license the MOST recoverable would be 300 BCF IF ANY GAS AT ALL IS RECOVERABLE.

If they are lucky and they get flow, in my opinion, they will be very lucky to get 2 BCF per flowing well. They might only get 1 BCF or 0.5 BCF per flowing well before it dies and flows no more.

This area is VERY VERY TIGHT based on all the wells so far, so even if you frac the penetration of the frac will only get you a very small area in my view which can be drained, much smaller than what Sino are getting in their sweet spots.

To exploit this area based on this VERY LOW PERMEABILITY (no gas flow at all in their test) you might even be looking at having to drill 300 to 400 wells to get out 300 BCF, if its there at all.

Wonder if LRL will go back to looking for Thermal Coal in China or Gold Mining or all the other things they have done/said they would do, and give up on the gas after these 3 wells ?

I think when people look for really small companies they should go for something like TRAP (Trapoil).

Undervalued, cash/assets (waiting for Athena deal) pretty much equal to market cap, currently drilling Romeo in the North Sea, drilling a lot more wells in 2013.

Lots of upside, minimal downside, conventional oil, close to home North Sea - simple and safe.

Just imo.

Big fall it was, the wheels have fallen off of this ramp now big time.

No fracking until late March most likely.

IC recommends SELL

www.investorschronicle.co.uk

Leyshon flow test disappoints:

Shares in China focused unconventional gas explorer LRL shed 24 per cent after tests showed the company's ZJS5 tight gas well could not produce commercial flow rates without fracking. Frack testing will now proceed as originally planned, but the practice will have to wait until after the Chinese New Year in February. The company's second well, ZJS6, is progressing well towards its target depth of 2320 metres. Wireline logging of the well is scheduled for mid to late January.

The shares have retreated below the 15p level at which we first advised buying them. We haven't written off the company's project just yet, and we see its cash backing of 10p a share (after taking into account well costs) as a potential support level for the shares.

There could yet be value here, but for portfolio purposes we are selling the remaining half of the shares (we said sell half at 28p before initial drill results came out). Sell at 14p.

The previous owner of this license (CAMAC) did not it seems receive an offer from Sinogas to buy this licenses, else Sinogas with their experience and resources already in this area would have purchased it. It is said that Sinogas think this area is not very prospective and so did not bother buying it from CAMAC, whether this is correct or not is unknown but that is what has been said in certain places.

So it fell to a coal/coke/gold mining company (LRL) to suddenly change course (mining into gas exploration) and buy the license from CAMAC.

Now, on first looks the small amount of cash plus shares in LRL as payment to CAMAC could have appeared to suggest CAMAC wanted to keep exposure to any upside.

However, given CAMAC have been selling their LRL shares it perhaps suggests that CAMAC accepted whatever they could get and have been happily selling their LRL shares to get cash ahead of potential failure by LRL.

The last holdings RNS involving CAMAC showed they had sold below the notification level - so any more sales and there will be no RNS, they can simply keep selling if they so wish to sell off all their LRL shares.

http://www.investegate.co.uk/leyshon-resources-(lrl)/rns/holding(s)-in-company/201211141518301435R/

CAMAC sold the license for not a lot of money and some LRL shares and have been selling those LRL shares.......... interesting.

.

Interesting RNS from LRL there.

http://www.asx.com.au/asxpdf/20130109/pdf/42cbq208n33kkc.pdf

Firstly we have confirmation of mid-March fracking start - as I have been saying late Q1 is the normal start date - shame on the rampers for telling everyone February.

Also a change in tune, I note they now say to the effect "fracking and if warranted then flow testing after fracking". I am sure the rampers were telling everyone about "commercial" after the last RNS, but this one confirms that only after fracking will there be any flow testing, IF fracking works and the wells flow.

Apart from that nothing exciting about hitting gas in the Ordos basin, thats a given - although this well appears to multiple thin layers, from the info in the RNS.

Long wait until June....

........."Significant results will be reported as they come to hand, however, depending on whether flows are achieved and if so whether long term flow testing is required, it is possible that the overall results will not be available until June."........

Looks like a much more cautious outlook now, flow testing maybe IF fracking is good, and even then getting flows will warrant long term flow testing then before overall results.

This is pretty much what I have been saying all along, striking gas and flowing gas initially mean jack here - its all about getting a well to flow and flow for a long time, to give recoverable amounts of gas. Based on Sinogas average of just 2BCF recoverable per well, its going to take long term flow tests with pressure readings for LRL to work out if any well will be commercial overall - that means they can recover enough gas from the hole before it stops flowing again to pay for drilling costs and make a profit..........

This is tight gas and in an area considered to be "less prospective" than the area's Sinogas has, until proven otherwise.

There is no point drilling holes in the ground if they only flow for a week or two and then stop - you must get enough out to pay for drilling/overheads and turn a profit - for this project to be viable.

So June is about right for an overall "ok its commercial" or "no its not viable overall".

Totally contrary to what the previous poster asserts, the actual flow test statement in the RNS includes -
"As in the case of ZJS5 some intervals may be tested for flow without stimulation ie: without fracking."

I hope that wasn't a deliberate oversight.

You guys obviously know this [ LRL] Stock, but after all said and done, Director Paul Atherley has just spent £268k on a big wad of stock. Could it be that he does believe thee is gas there? Otherwise, why is he investing in what you appear to be saying is almost a dry area?

He currently owns 12% of LRL, inc. this latest purchase.

Is this a "stay-away", since it's based in Aus. and China?
EDIT(15March2013)- seems to be upward going - IC suggests the upside "huge" is worth the downside, since cash part-supports sp. Since China needs the gas I guess they will have Gov. support - glad I bt about 16p
EDIT (Jn2013). Ooops! sp falls to c.10p as well is deeded "dry" - but there are others.
EDIT(23Jy2013)-Another drilling a few km away from the Dry - sp12p, " in hope".

A reminder for Thursday evening, spaces still available if you would like to attend.

Mining and Resource Investor Evening- London – 25th April 2013


Following the resounding success of our previous evening events, Mining and Resources Quarterly and Shares Magazine are proud to offer another chance for you to meet, hear from and ask questions of key senior management figures from carefully selected companies in the mining, oil and gas sector.

This event offers an unique opportunity not only to hear about the latest plans from some of the most exciting companies in the sector, but also to put your questions to the people that matter. What is more, there is a free drinks and canapés reception where you can mingle with industry leaders and your fellow investors. Make sure you don't miss this unique opportunity to get the answers you need from the people who make the market.

The evening conference is tailor-made for private investors and professionals who already have exposure to mining and resources stocks, or anyone who is considering putting money to work in these exciting and dynamic industries.

Tickets are completely free but places are strictly limited so register now.

REGISTER NOW FOR LONDON EVENT ON 25th APRIL 2013

Date: Thursday 25th April 2013

Venue: Novotel Tower Bridge, 10 Pepys Street, London EC3N 2NR

Registration: 6.00pm

Presentations: 6.30pm followed by a drinks/canapés reception

Companies Presenting:


FOX MARBLE



Fox Marble Holdings PLC(FOX) is a natural stone extraction company operating in Kosovo and the Balkans region, with headquarters in the United Kingdom. Established in 2011, Fox Marble has access to over 300 million cubic metres of premium quality marble including white breccia and honey yellow onyx.





Speaker: Chris Gilbert, CEO



LEYSHON RESOURCES



Leyshon Resources Limited (AIM & ASX: LRL) has been fully engaged in China since 2003 and has its main operating office located in Beijing.

Leyshon, along with its partner PetroChina, is one of small number of companies exploring and looking to develop unconventional gas production on the Eastern Flank of the Ordos Basin in China.

"We are accelerating the 2013 programme for the Zijinshan Gas Project with plans to drill and test six wells, capture 300 kilometers of seismic data with the aim of delineating resources by the end of the year.”

Speaker: Paul Atherley, Managing Director



MWANA AFRICA


Mwana Africa PLC(MWA) is a pan-African resources company with operations in Zimbabwe and South Africa, and a broad range of exploration projects and interests in the Democratic Republic of Congo (DRC), Angola, Ghana and Bostwana. The group has a diverse asset base, including gold, nickel, copper, cobalt and diamonds.

In October 2005, Mwana Africa became the first African-owned, African-managed resource company to be listed on the London Stock Exchange’s Alternative Investment Market (AIM), through a reverse takeover of African Gold plc by a privately held mining company, Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty) Limited was itself formed in 2003.

The company intends to pursue further mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders

Speaker: Donald McAlister, Finance Director



REGISTER NOW FOR LONDON EVENT ON 25th APRIL 2013

Dress code: business attire

Listen to Paul Atherley, CEO - Leyshon Resources on the panel of the recent BRR Media Thought Leaders series.

Click here to watch

Today's announcement makes interesting reading.

Yes very promising. LRL are well cashed up also cash equivalent of 12p and news of a commercial flow today on it's first well.