Project Profile
Value: Undisclosed
Location: eastern fringe of the Ordos Gas Basin, central China
Reserves: unknown
Area: 705.4km2
Start-up Year: -
The Zijinshan Gas Project covers an area of approximately 705.4km2 on the eastern fringe of the Ordos Gas Basin in central China. The Exploration Licence for the Zijinshan Gas Project is held by PetroChina, a wholly-owned subsidiary of CNPC, which is the largest oil and gas producer in China. Pacific Asia Petroleum Limited (PAPL)’s interest in the Zijinshan Gas Project is through its participation in the Zijinshan PSC with CNPC. PAPL is the operator of the Zijinshan PSC and has a 100% working interest in the exploration phase of the Zijinshan PSC. PAPL is responsible for all the exploration costs during the exploration phase of the Zijinshan PSC and assumes all exploration risks for the Zijinshan Gas Project.
PAPL is transferred to Leyshon Energy from Leyshon Resources as part of the Demerger process. Leyshon Resources acquired the interest in the Zijinshan PSC pursuant to its acquisition of PAPL from Houston-based CAMAC Energy Inc., which was completed on 6 August 2012. The Zijinshan PSC is valid for 30 years and expires in 2038. The exploration period under the Zijinshan PSC expired on 30 April 2013. PAPL has reached agreement in principle with CNPC to extend the exploration period of the Zijinshan PSC to the end of 2017, albeit this extension process remains to be formally completed. Under the terms of the Zijinshan PSC, CNPC has the right to back in to the project with a 40% interest at the development stage, in which case the development costs required for the development operations will be borne by PAPL and CNPC in proportion to their participating interests (PAPL 60% and CNPC 40%).
Operators:
Pacific Asia Petroleum Limited (PAPL) (owned by Leyshon Energy of Leyshon Resources): Operator with 100% interest (60% if CNPC exercises the right for 40% interest in the project)
PetroChina (a wholly-owned subsidiary of CNPC): 40% interest (if exercise the right)