Friday, November 30, 2012

JVL Advisors purchases another 1,044,000 shares

JVL Advisors purchased another 1,044,000 shares on 11/26 and 11/27.  This brings their total holdings to 15,051,100 shares!  JVL purchased 7,143,000 shares through a private placement and have now purchased an additional 7,908,100 shares in the market.  The purchases in the market have been above the price of the warrants which is certainly an encouraging sign.

Wednesday, November 28, 2012

More evidence of a Cline Shale boom

Lubbock-Avalanche Journal posted an interesting article on the Cline Shale.  The article states that the Cline Shale "is anticipated to be one of the largest oil plays in American history!"  Here is the link:

Tuesday, November 27, 2012

John Lovoi keeps buying Lynden Energy

John Lovoi continues to purchase shares of Lynden Energy Corp.  He now controls 14,007,100 shares as of 11/26/12.  It appears that another 1 million shares traded today in one transaction and could possibly be another insider purchase.  Given the recent activity around Mitchell Ranch by Firewheel Energy and around the Tubb area by various companies drilling in the Fusselman, Lynden's land is becoming more and more desirable.  Obviously, JVL Advisors is a believer. 

Here is an updated acreage/valuation analysis that shows the huge potential for Lynden!

                             Acreage       Low               Mid              High
West Martin/WF     4,108         $20k/acre       $27.5k/acre  $35k/acre
Tubb                      2,401         $30k/acre       $35k/acre     $40k/acre
Mitchell Ranch       34,150        $5k/acre         $7.5k/acre    $10k/acre

Total                                       $325 M             $453 M         $581 M

John Lovoi has extensive experience in research covering the oil industry as head of Morgan Stanley's Global Oil and Gas investment banking practice.  By these calculations, Lynden is worth several times its current market cap and could be worth $2 to $4/share.  Thhis may be the reason why John Lovoi is buying is such large quantities.