Thursday, September 5, 2013

Lynden reports 1,244 boed during last 14 days!

Lynden Energy Corp.'s latest news release reported production after royalties of 1,244 boed over the last 14 days.  Their production is in line with their earlier forecasts.  The production compares favorably to Diamondback Energy's recent purchase of 15,000 net acres and supports the application of the valuation metrics from that deal to Lynden's Wolfberry lands.

Tuesday, September 3, 2013

Diamondback purchases 12,500 net acres in Midland County

Diamondback Energy purchased 12,500 net acres in Midland County for $440 million (click here).  This equals $35,200/acre.

Applying these metrics to Lynden Energy Corp.'s Wolfberry project translate to $228 million (6,482 net acres x $35,200/acre).

Conservatively, Lynden's Mitchell Ranch could be valued at $68 million (34,150 net acres x $2,000/acre).

With 145 million shares, LVL could be valued over $2.00/acre using the above metrics!