Wednesday, July 13, 2011

Lynden Energy up 26% today and up 89% in just over two weeks!

After today's announcement that Lynden Energy Corp. obtained a $50 million Credit Facility, the stock traded up 26%. This follows several days of positive trading for Lynden. The stock price is now up 89% in just over two weeks! Clearly, the market likes the recent announcements by the company.

Today's uptick on almost 2.5 million shares follows up on several days of trading up. The recent deal with the large company, obtaining the Credit Facility and the excellent results from Spade 17-1 have increased the market visibility of Lynden.

Lynden Energy obtains Credit Facility

Lynden Energy Corp. announced today that it has obtained a revolving line of credit in the amount of up to $50 million. This should reduce fears of further dilution.

Additionally, Texas Capital Bank of Dallas would have completed their due diligence prior to offering the line of credit. They have validated Lynden's work to date by moving forward with the Credit Facility.

This is excellent news for Lynden!

Monday, July 11, 2011

Lynden Energy up 18% today!

Lyden Energy Corp. traded up 18% today on above average volume.

With the recent release of encouraging results from Spade 17-1 and partnering with a large company to exercise the Mitchell Ranch, Lynden should be trading much higher. Maybe this is the beginning of Lynden finally attracting some market attention. We believe that Lynden has a lot of upside potential based upon its success in the Wolfberry and lease of the Mitchell Ranch.

Tuesday, July 5, 2011

Lynden converts Mitchell Ranch option into lease

Lynden Energy Corp. announced today that it has exercised its option on the Mitchell Ranch and converted it into a lease. They have also leased 35,000 acres to a large, independent eploration and production company.

This appears to be a very good deal for Lynden as they now own the lease for the Mitchell Ranch. They will also retain a 1.25% royalty interest. Also included is the return of the mineral rights above the base of the Strawn formation.

The most significant part of this deal is the sharing of technical information between the large company and Lynden. Because the large company is targeting the rights from the Strawn and below, they will be drilling through the Wolfcamp. Lynden and CrownQuest will be able to review the logs to gain further understanding of the Wolfcamp at the large company's expense. Also, a deal with a large company provides opportunities for a potential buyout in the future.