Linn Energy announced their third Permian Basin property acquisition for $305 million. The price is valued at $109,000 per flowing barrel and $17.00 per proved Boe. It appears that Linn has purchased the properties at a premium to recent Permian Basin acquisitions. We believe this is due to the upside potential of the Wolfberry play. Linn has the potential for approximately 125 probable Wolfberry drilling locations.
Raymond James has reiterated their Outperform rating for Linn as they believe that Linn is capitalizing on opportunity including upside potential in the Wolfberry play.
This is another example of a company paying a large sum for Wolfberry play exposure. Each acquisition draws more attention to the Wolfberry play and Lynden Energy Corp.’s (LVL) terrific opportunity. It’s possible that LVL could be an acquisition target at some point in the future depending upon their success in the Wolfberry.
Tuesday, March 30, 2010
Monday, March 29, 2010
LVL up 20%!
Lynden Energy Corp. (LVL) saw another big jump in their stock price on Friday. The stock closed at $0.71, up 20% on the day. Their recent success in the Wolfberry play is not going unnoticed and the company is attracting attention.
Wednesday, March 17, 2010
An Exciting Day for Lynden!
An exciting day for Lynden Energy Corp. (LVL)! With the recent news announcing the success of LVL’s second and third wells, the stock price jumped 34% today up to $0.55 on over 2.4 million shares. The recent news shows that LVL is capable of repeating the outstanding results they achieved from their first well, Harrell 34 #1.
It’s worth noting that 811,000 shares were purchased in the market by Richard Andrews, the Chairman of the Board!
It’s worth noting that 811,000 shares were purchased in the market by Richard Andrews, the Chairman of the Board!
Lynden Announces Successful Completion and Tie-in of Second and Third Wolfberry Wells
Lynden Energy Corp. (LVL) announced that the Miller Trust #101 and Mallard 23 #2 wells have been tied into production. The Mallard 23 #2 is currently producing at a rate of 83 bo/day and 344 mcf/day. The Miller Trust #101 is producing at a rate of 75 bo/day and 70 mcf/day. LVL states that they are especially encouraged by the initial results from the Miller Trust #101 given that they could not drill down to their target depth to test two deeper targets. Both wells are still returning completion fluid and we believe that flow rates can be expected to increase.
They also reported that the Harrell 34 #1 well has produced in excess of 6,500 barrels of oil and 14 mmcf of gas since being tied in. Their Roy 1 well has also been completed and scheduled to be tied into production shortly.
These are very encouraging results and we expect that this news will not go unnoticed by the market. At its current price of $0.41, this company is dramatically undervalued and a strong buy at these levels. LVL's opportunity for a large stock price appreciation is outstanding!
They also reported that the Harrell 34 #1 well has produced in excess of 6,500 barrels of oil and 14 mmcf of gas since being tied in. Their Roy 1 well has also been completed and scheduled to be tied into production shortly.
These are very encouraging results and we expect that this news will not go unnoticed by the market. At its current price of $0.41, this company is dramatically undervalued and a strong buy at these levels. LVL's opportunity for a large stock price appreciation is outstanding!
Friday, February 5, 2010
Pioneer Announces Success in the Wolfberry
Pioneer Natural Resources announced at their February 3 conference call that they’re having a lot more success in the Wolfberry play. They have found out that “the Wolfcamp is more prolific than we thought just inside the Spraberry.” They are getting an additional 30 to 35,000 barrels additional by drilling into the Wolfcamp and are seeing much better results.
Lynden Energy Corp. (LVL) has drilled their first three wells down through the Wolfcamp and have outstanding results from their first well. That well flowed an average of 138 bo/day and 277 mcf/day over the first fourteen days of production. It will be interesting to see if they can duplicate that with their next wells. If so, they might be on to something!
Lynden Energy Corp. (LVL) has drilled their first three wells down through the Wolfcamp and have outstanding results from their first well. That well flowed an average of 138 bo/day and 277 mcf/day over the first fourteen days of production. It will be interesting to see if they can duplicate that with their next wells. If so, they might be on to something!
Thursday, February 4, 2010
Callon Shifts Onshore into the Wolfberry Play
Callon Petroleum Company announced details of its strategy shift to diversify its asset base onshore on February 2. They stated “the cash flow generated from our two deepwater fields with quality, long lived resources will be reinvested into onshore conventional oil and shale gas properties.” They said they made two transformational acquisitions “extending its operations onshore into the Wolfberry oil play in the Permian Basin.” Their primary target in the Permian Basin is the Wolfberry trend.
Callon is another example of a company targeting the Wolfberry play in West Texas.
Callon is another example of a company targeting the Wolfberry play in West Texas.
Permian Basin Gaining More Attention
The Houston Chronicle published an article on January 30 about the Permian Basin. They stated that the basin is looking more attractive and that several oil and gas companies have recently struck deals to enter the basin and diversify production away from natural gas to oil.
Recent deals that have occurred in the Permian Basin:
- Sand Ridge closed an $800M deal to buy Permian Basin Properties from Forest Oil Corp. in December
- Concho Resources agreed to a $225M deal with private sellers for Permian Properties in November
- Linn Energy said in December it would acquire properties in the Permian and Anadarko basins for $155M
- Vanguard Natural Resources closed a $55M deal for Permian Basin Properties in January
- Berry Petroleum announced in January that it would buy Permian Basin oil properties in the Wolfberry trend for $126M
These deals demonstrate that others are willing to pay large sums for Wolfberry and Permian acreage. Lynden Energy Corp.’s (LVL) opportunity is outstanding!
Recent deals that have occurred in the Permian Basin:
- Sand Ridge closed an $800M deal to buy Permian Basin Properties from Forest Oil Corp. in December
- Concho Resources agreed to a $225M deal with private sellers for Permian Properties in November
- Linn Energy said in December it would acquire properties in the Permian and Anadarko basins for $155M
- Vanguard Natural Resources closed a $55M deal for Permian Basin Properties in January
- Berry Petroleum announced in January that it would buy Permian Basin oil properties in the Wolfberry trend for $126M
These deals demonstrate that others are willing to pay large sums for Wolfberry and Permian acreage. Lynden Energy Corp.’s (LVL) opportunity is outstanding!
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