Wednesday, April 21, 2010

Permian Basin Mentioned in Goldman Sachs Report

Goldman Sachs (GS) issued a report on the oil and gas sector on Monday and included comment on M&A acquisition potential. Interestingly, they stated that although Apache Resources’ plate is full following the asset acquisition from Devon Energy and the corporate acquisition of Mariner Energy, they “see additional potential for Apache to expand its onshore position, particularly in the Permian Basin.”

This is an interesting comment as it demonstrates how important the Permian Basin and Wolfberry play are. For a company to have made two large acquisitions and state that their “plate is full,” it says a lot that GS sees potential for additional acquisitions in the Permian Basin. Lynden Energy Corp.’s (LVL) land is positioned in the heart of the Wolfberry play in the Permian Basin and can capitalize on this attention.

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