Exciting News from Lynden!

Lynden Energy Corp. released an update on its Tubb A#1 Wolfberry well.  This is the first well that Lynden and Crownquest have drilled at their Tubb Prospect Area.  This well averaged 109 barrels of oil per day over the first 23 days and 106 mcf/da in the eleven days since it began producing gas.  Lynden has a 35.55% working interest in Tubb and it is likely that with the Tubb production, Lynden is meeting their projection of 500 boe/d.  Of additional significance is that the oil gravity is 43 degrees API which means that the oil that Tubb is producing is of the highest value!

The news release says "Initial results from the well have exceeded management's expectations and are suggestive of the significant development potential for the relatively untested Tubb Prospect Area."  It also states that there could be approximately 170 gross wells developed on the acreage. 

Since the market appears to be valuing Lynden on the West Martin and Wind Farms acreage only due to that being the area that has current reserves, success at Tubb has the ability to dramatically increase value.  Tubb is on the eastern edge of what is considered to be the fairway of the Wolfberry Trend but if it is ultimately proven to be an area that is developable, then the market should start assigning value to Lynden's Tubb land.   Lynden's net Tubb acreage is 2,470 acres and a valuation of only $10,000/acre would increase Lynden's value by $25 million.  Of course, if the land ultimately becomes as valuable as typical Wolfberry land, then it's possible that values could approach the $35,000/acre that is currently being paid for Wolfberry land.  This news release is indeed exciting news!

Of additional note, Chesapeake received approval to revise their current S150H horizontal well permit at Mitchell Ranch last week.  The revision changes the lateral length as well as revises the well type from an injection well to a producer/oil well.  Chesapeake is actively continuing their drilling at Mitchell Ranch and the change to a producer well is a good indicator.

Lynden's partner at Mitchell Ranch

Through research of public records, we have confirmed that Chesapeake Energy is indeed the company that Lynden Energy Corp. and Crownquest leased a portion of the Mitchell Ranch to.  Chesapeake applied and received permits for two vertical wells and three horizontal wells on their leased land.  Recently, Chesapeake obtained a permit for a horizontal sidetrack well bore at the S250H location.  It appears that Chesapeake is actively drilling and spending a large sum on their wells at Mitchell Ranch!

Lynden converts Mitchell Ranch option into lease

Lynden Energy Corp. announced today that it has exercised its option on the Mitchell Ranch and converted it into a lease. They have also leased 35,000 acres to a large, independent eploration and production company.

This appears to be a very good deal for Lynden as they now own the lease for the Mitchell Ranch. They will also retain a 1.25% royalty interest. Also included is the return of the mineral rights above the base of the Strawn formation.

The most significant part of this deal is the sharing of technical information between the large company and Lynden. Because the large company is targeting the rights from the Strawn and below, they will be drilling through the Wolfcamp. Lynden and CrownQuest will be able to review the logs to gain further understanding of the Wolfcamp at the large company's expense. Also, a deal with a large company provides opportunities for a potential buyout in the future.

CrownQuest sells Permian Basin package possibly valued at $350 to $450 million

CrownQuest Operating has completed the sale of 7,910 net acres possibly valued at $350 to $450 million. The land is located in Howard and Mitchell Counties in the Permian Basin.

This is significant news for Lynden Energy since they own a 50% share in a 100,000 acre ranch in Mitchell County. CrownQuest is their partner and owns the other 50%.

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!

Huge Opportunity to Capitalize on the Hottest U.S. Oil Play!

This is a huge opportunity to take advantage of the Wolfberry Oil Play. With Lynden Energy Corp.’s (LVL) small market cap and big opportunity to exploit the Wolfberry play, this company could really take off once their story becomes known. Even though LVL has a limited land position in the Wolfberry at this time, it’s still a significantly undervalued company in our opinion. With the experience of their operator, CrownQuest, they have the expertise to complete the Wolfberry wells at minimal risk as has been demonstrated by the success from their first three wells.

The appreciation in LVL’s stock price should continue as more and more people learn about the Wolfberry and LVL’s potential.

Wolfberry Update from Lynden

Lynden Energy Corp. (LVL) reported that their Harrell well produced an average of 138 barrels of oil and 277 mcf per day over the first fourteen days of production. These are excellent results and the company said that they “exceed the range of expectations for a typical Wolfberry well.”

They have also completed drilling of two more wells, the Miller Trust #101 and the Mallard 23 #2. LVL has shifted their focus away from natural gas and towards oil. They appear to have made a successful transition as their new leases are located in the Wolfberry play in West Texas in what may be the hottest new oil play in the U.S.! They have also teamed up with CrownQuest Operating out of Midland who has been very successful completing Wolfberry wells in adjacent areas. CrownQuest has the experience necessary to make LVL’s Wolfberry project a success.