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Leyshon Resources shares plunge - what does that say about drilling risk?

Tom Winnifrith
Monday 17 June 2013

AIM Listed Leyshon Resources (LRL) has announced that it has abandoned ZJS6, its second well drilled in the Ordos Gas basin. It states that it has encountered water in several zones and thus cites “technical problems” as its reason for pulling away.

The well did discover gas so is not a total wipe out but technically this will be very hard work and so quite rightly Leyshon has cracked on with the third of its planned eight wells in Ordos.

The shares have tanked by 30% on the news to 11.125p valuing Leyshon at just under £40 million (the same as Andy Carroll cost The Irons over five years if he signs with West Ham).  Which is worth more: Leyshon Resources or five years of old horseface? Discuss.

And so as a result the Leyshon Ordos scores on the doors are:

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About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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