Friday, May 11, 2012

Lynden Acreage Map

As you can see from the above map (LVL lands shown on map taken from Laredo's recent presentation), Lynden Energy Corp. has acreage located within the heart of the Wolfberry play with all of the large Wolfberry players surrounding them.

Given the two recent Permian Basin acquisition metrics of $38,600/acre and $47,826/acre, it's possible that Lynden could sell portions of their acreage for similar amounts.  Here are valuations of each of Lynden's prospect areas based upon the recent transactions:

West Martin, 2,746 net acres @ $43,000/acre = $118 million
Wind Farms, 1,095 net acres @ $43,000/acre = $47 million
Tubb, 2,469 net acres @ $43,000/acre = $106 milllion

Lynden's Mitchell Ranch prospect area is within Devon Energy's delineation of the Cline Shale.  Valuing that land at $5,000/acre equals $171 million (34,150 net acres).

Recent transactions are continually validating Lynden's land as viable Wolfberry acreage.  With companies scrambling to assemble Wolfberry acreage positions, Lynden has a tremendous opportunity to capitalize! 

Thursday, May 10, 2012

BreitBurn Energy Partners enters Permian Basin, another great Wolfberry comp! $47,826/acre!!!

BreitBurn Energy Partners L.P. signed two agreements to acquire Permian Basin Wolfberry properties.  The combined price is approximately $220 million.  The assets include:

- Net production of 2,100 boe/d (56% oil)
- Estimated proved reserves of approximately 9.5 mmboe
- Net acreage position of 4,600 acres

This is a great comp for Lynden Energy!  The price per acre metric for these transactions is $47,826/acre and $104,762 per flowing boe/d.

Wednesday, May 2, 2012

Comments about Permian values and Cline

The latest issue of A&D Watch Weekly was released today and included some exciting comments.  An article about Permian Basin values stated that there is still great deal price upside in the basin.  The article states further that the Permian has a lot of room to go up due to the potential of several stacked payzones and that development is easier in the Permian than most other basins due to the ease of doing oil development in Texas and the few surface obstacles.

Ward Polzin, head of A&D for Tudor Pickering, Holt & Co. Securities, Inc., was quoted in the article saying that the Cline shale play is the "next new hot thing, no question about it," and that the "Cline is the real thing."

Monday's release regarding the Eagle Energy Trust acquisition and $38,600/acre valuation backs up the comments from the A&D article.