Here is the link to the Torrey Hills Capital/babybulls.com article on Lynden Energy (click here).
Highlights from the article:
- Pioneer Energy plans to "rapidly escalate their horizontal drilling program" in the Permian Basin. Lynden Energy has "excellent exposure to this Permian region" with 6,500 net acres in the core Wolfberry Play area.
- Lynden sold 630 net acres to Breitburn Energy for $25 million ($40k/acre).
- Lynden is targeting 1,000 to 1,200 boed by June 30, 2013 and 1,500 boed by year end. Note that this is only from vertical wells as Lynden has yet to drill a horizontal well.
- Using Breitburn sale, Lynden's remaining acreage is "around $193 million , $1.34/share." Using $125k per flowing barrel equals $1.29/share. With these "two back of the envelope calculations would yield share price appreciations of 91.5% and 84.3% yielding nearly a double from current share prices."
- Devon and Oxy have "set up camp on the perimeter (of Mitchell Ranch) and are showing success with a number of 800+ boed horizontal wells in close proximity."
- JVL Advisors owns 21.29% (prior to today's 2.5 million share purchase) of the outstanding shares. "Based in Houston, John is a very experienced energy professional and institutional investor with an excellent track record. If he sees this much upside in Lynden at this time, we think you should be taking a hard look at the Company here as well."