Thursday, December 23, 2010

Note on Lynden's Wolfberry Project Reserves

Further review of Lynden Energy Corp.'s Project Reserves report released on October 28, 2010 shows that their Proved plus Probable reserves as of June 30, 2010 was estimated to be $64.0M based upon 2011 oil pricing of $79.54/barrel. That reserve estimate would greatly improve if it were based upon today's oil pricing of over $90/barrel. With Lynden's increased activity in the Wolfberry, that project alone should justify at least $1.00/share.

Lynden has very little downside risk based upon their Wolfberry holdings and any success with their Mitchell Ranch project will significantly increase their value.

Goldman Sachs releases research stating "Permian Basin Renaissance to Intensify in 2011"

Goldman Sachs released a research report stating that they believe that we are still early in the Permian Basin oil renaissance. There are multiple sources of upside including downspacing, exploration success finding additional productive zones and technology to improve productivity. "There has been a sharp pick-up in industry activity in the Permian Basin." They expect the improvements that were realized in the Permian Basin in 2010 to continue in 2011.

The research was very good in calling attention to the upside potential of companies doing business in West Texas including the Wolfberry trend. As more attention is drawn to this area, the companies exposed to the Wolfberry trend should outperform.

Monday, December 20, 2010

Lynden Energy drills three Wolfberry wells

Lynden Energy Corp. announced that they have recently drilled three Wolfberry wells (click here to see the release). They are now cased and ready for completion. The release states that "all three wells had encouraging oil and gas shows during drilling."

Wednesday, December 8, 2010

Linn Energy Announces 2011 Plans for Drilling Wolfberry

Linn Energy announced its 2011 Capital Program today (click here). They are planning to drill more than 130 wells in the Wolfberry trend which they are calling high rate-of-return liquids focused low-risk, low-cost projects.