Lynden releases production numbers and comment about Howard Weil 2012

Lynden Energy Corp. reported production after royalties of over 500 boepd on average over a ten day period ending March 31.  Highest daily production during the period was 595 boepd!  These are excellent numbers demonstrating continuing high production from their Tubb A #1 well as well as shallow declines from their existing wells.

Of significance is that the Tubb A #1 well is still producing over 100 barrels of oil per day.  This number does not include natural gas or natural gas liquids and is 90 days after being tied in.  Should these numbers be replicated, Lynden has some very special acreage.  The Tubb Prospect Area includes 7,341 gross acres of which Lynden's net interest is approximately 2,469 net acres.  Additional success here will surely capture industry attention and Lynden's large acreage puts them in a nice position to capitalize.

Recently, Richard Mason wrote an article about Howard Weil 2012.  The article titled "Operators Hint at Two New Liquids Plays, Major Permian Discovery" is one more leg to Lynden's story.  The apparent industry excitement about the Cline shale is generating a lot of buzz.  Devon, Concho, EOG and Pioneer are all actively pursuing the Cline shale.  "Pioneer and Concho are now suggesting that the prospective Wolfcamp (Cline) spans the entire Midland basin," the article states.  (For those unfamiliar with the Cline shale, it exists just below the Wolfcamp shale zones.  Some companies are grouping the shales together and calling them the Wolfcamp shale.)

Tim Leach, CEO of Concho Resources, commented that they have 45,000 net acres of new holdings and their primary target is the Cline shale.  "The punchline here is we think this play in the northern part of the Midland Basin will be very similar in returns and composition to the Wolfcamp in the southern part of the Midland Basin."

A couple of additional comments from the article.  "Long story short: the horizontal Wolfcamp is on the verge of a substantial breakout in the Permian Bains."  Also, Scott Sheffield, CEO of Pioneer, states "People... will will have to buy out smaller independents.  It will be really tough to get a large acreage position because most land is held by production by the various operators."  Again, Lynden is in an excellent position, because of their 103,400 acre Mitchell Ranch project.  The next few months will be very interesting...