Unconventional Gas Player Leyshon Energy Sees Huge Growth Opportunities in China
AIM listed, China focused unconventional gas player Leyshon Energy sees immense potential in Chinese gas sector which will provide the company with the opportunities to participate in this exciting investment phase of the country’s energy development.
“China is short of energy. It is increasingly dependent on imports for both gas and oil and is under intense environmental pressure to reduce its reliance on coal. China is now entering a Golden Age of Gas - and is seeking to increase its consumption of gas from all sources,” John Manzoni, chairman of Leyshon Energy, told shareholders at its AGM.
In 2012, Leyshon successfully transformed from mining sector to energy sector by acquiring Zijinshan Gas project in August 2012. The Zijinshan Gas project comprises the Zijinshan Production Sharing Contract (PSC) located on the eastern fringe of the Ordos Basin in central China, covering and area of 705 km2. The company’s wholly owned subsidiary Pacific Asia Petroleum Limited (PAPL) is the operator of the PSC and has a 100% working interest in the exploration phase of the PSC. CNPC has the rights to back in to the project with 40% interest at the development stage.
“We identified early on the reforms which will provide us with the opportunities to participate in this exciting investment phase of China’s energy development. These reforms are now being implemented at an increasing pace and we are witnessing rising gas prices, additional financial incentives to invest in unconventional gas and more clarity in the underlying regulatory framework. All of which are encouraging for future investment in the sector,” Manzoni added.
He confirmed the company is looking for expansion in Asia’s biggest economy.
“As we have stated publicly – we are actively looking for acquisition opportunities in China to grow the company, and I am delighted that we have received very strong indications of financial support should we find the right opportunity,” Manzoni said.