Three Recent Deals in the Permian Basin

Three deals have been recently announced in the Permian Basin. Concho Resources announced it will be acquiring a property for $1.65 billion the same day that Apache announced its $3.1 billion acquisition. Prior to that, Linn Energy announced it will acquire properties in the Wolfberry trend for $90 million.

Lynden Spuds First Mitchell Ranch Well, Thom Calandra Considering LVL for Ticker Trax Investment

Lynden Energy Corp. (LVL) and CrownRock have spud their first Mitchell Ranch well. They expect to spud their second well in early July. Excitement is building as Thom Calandra from Ticker Trax wrote an article today highlighting LVL and says that "the company has a shot at leveling the plains here and making a bundle for its investors."

Keith Schaefer of Oil & Gas Investments in Canada says that "the potential to create a lot of value quickly is there."

The article also mentions that Daniel Rice of BlackRock Energy & Resources Fund is a big supporter and large shareholder of LVL. BlackRock and Pinetree Capital are some of LVL's larger shareholders which adds credibility to this company.

Exciting news for this company!

Lynden Energy Corp. Options 101,495 Acres

Lynden Energy Corp. (LVL) has entered into an agreement to acquire a 50% interest in an option to acquire oil and gas leases on a 101,495 acre ranch in Coke, Mitchell and Sterling counties. This is a great opportunity for LVL to participate in a large scale oil project. Together with CrownRock, they are planning two wells to be spudded in June. Success in this play could return multiples to LVL's current stock price!

PDC Announces Wolfberry Acquisition

Petroleum Development Corporation (PDC) announced it has signed an agreement to purchase assets in the Wolfberry Oil Play. Details of the acquisition include a purchase price valued at $75 million for 8,300 net acres in Midland, Ector, Martin and Andrews counties ($9,036/acre). PDC plans on drilling the Wolfberry oil wells on 40-acre spacing.

Permian Basin Mentioned in Goldman Sachs Report

Goldman Sachs (GS) issued a report on the oil and gas sector on Monday and included comment on M&A acquisition potential. Interestingly, they stated that although Apache Resources’ plate is full following the asset acquisition from Devon Energy and the corporate acquisition of Mariner Energy, they “see additional potential for Apache to expand its onshore position, particularly in the Permian Basin.”

This is an interesting comment as it demonstrates how important the Permian Basin and Wolfberry play are. For a company to have made two large acquisitions and state that their “plate is full,” it says a lot that GS sees potential for additional acquisitions in the Permian Basin. Lynden Energy Corp.’s (LVL) land is positioned in the heart of the Wolfberry play in the Permian Basin and can capitalize on this attention.

Mentions of the Wolfberry Play in the Deal Magazine

The Deal magazine has published recent articles mentioning the Wolfberry oil play in the Permian Basin. The article, “Gettin’ oily” says “a flurry of deals have targeted the Wolfberry oil trend in the Permian Basin.” It noted the deals by Linn Energy, Berry Petroleum and Concho Resources and the high prices paid for Wolfberry acreage.

The article, “Representing a very hot sector”, says that the state of oil and gas deal making is “very hot” and there have been a tremendous number of deals already. They see M&A transactions in the oil sector to continue.

All of this attention on deal making in the Wolfberry play and Permian Basin continues to bring attention to Lynden Energy Corp. (LVL). With the success of LVL’s Wolfberry wells, we should continue to see stock price appreciation, especially if the company gets the attention of bigger players. This is an extremely tightly held stock and large gains can happen very fast.

Insider Purchase

Richard Andrews, the Chairman of the Board for Lynden Energy Corp. (LVL), has made another insider purchase in the market. He purchased 35,000 shares at $0.71.