Wednesday, December 5, 2012

Oil and Gas Investments Bulletin update on Lynden

Keith Schaefer from the Oil and Gas Investments Bulletin posted an update on Lynden Energy today.  He states that Lynden is open to both a corporate deal and selling off assets.  We believe that monetizing the Wolfberry assets would be worth potentially $200 million (LVL's current market is cap is about $100 million) and Schaefer states that that would be a realistic transaction price.

Schaefer also states that a private company has hit a 1,000+ bopd well just a few miles south of Mitchell Ranch.  We believe that he is referring to one of the Firewheel/Oxy wells, either the Horwood #2151H or the H&H Ranch #41 well.  There is a lot of permitting activity surrounding the Mitchell Ranch area due to the abundant interest in the Cline Shale.  We believe that Schaefer's estimate of value for Lynden's Mitchell Ranch of $2,000 to $3,000/acre is low.  A valuation of $7,500 to $10,000/acre is entirely possible in the near future which could add $250 to $350 million of value.  We believe that exciting times are ahead for Lynden!

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