New Mention of Lynden Energy

The Energy Report published an article today that mentions Lynden Energy (click here).  About 2/3 of the way into the article, Keith Schaefer mentions that Lynden has three big potential catalysts:
1. Lynden could sell its Wolfberry assets, he mentions a potential $130 million deal.
2. Fang is drilling a horizontal drill on Lynden's assets.
3. Lynden is drilling on Mitchell Ranch and if it hits, "it's a game changer for the company."

New Lynden Energy Corporate Presentation

Lynden Energy Corp. posted a new Investor Presentation to their website (click here).

Crownquest applies for permit to drill at Mitchell Ranch

Crownquest, Lynden Energy's partner at Mitchell Ranch, applied for a permit to drill a new well named Spade17-3 offsetting the Spade 17-1 well that was previously drilled in 2010.

Crude Energy acquires 50% working interest in Sterling County

Crude Energy acquires a 50% working interest in 3,680 acres located in Sterling County (click here).  They are targeting many of the same zones that Lynden Energy will be targeting at Mitchell Ranch in Sterling County.  No price has been disclosed but at least there is interest in this area.

Potential Lynden Valuation Scenarios

Should Chesapeake's share of Mitchell Ranch revert back to Lynden Energy and Crownquest, which is mentioned by Torrey Hills Capital and Keith Schaefer as a possibility, Lynden would have approximately 51,000 net acres at Mitchell Ranch.  In addition, Lynden has approximately 5,966 net Wolfberry acres.


Lynden's recent transaction with Breitburn at $48k/acre and Diamondback Energy's recent Wolfberry transaction at $61.5k/acre demonstrate the potential of the Wolfberry acreage.  One can determine Lynden's potential land valuation by assigning values to both their Woflberry and Mitchell Ranch acreage.  Assigning $20k/acre to $40k/acre for the Wolfberry and $2k/acre to $5k/acre for Mitchell Ranch and dividing by 143.5 million shares results in potential valuations of $1.54/share to $3.44/share. 


Lynden's exposure to these two plays makes this an interesting story with potential upside from the current $0.84/share price.  Many people have touted Lynden Energy over the past year or so including Keith Schaefer of the Oil and Gas Bulletin, Torrey Hills Capital/Baby Bulls, Cormark, Thom Calandra, and Mat Wilson of Pinetree.   Could this be Lynden's time?  

Bullish analysis of Lynden Energy by Torrey Hills Capital

Torrey Hills Capital has issued a bullish analysis of Lynden Energy (click here).


Some of the positive statements:


"Lynden has stated that their intent here would be to basically sell the Company outright and spin out the remaining non-core Wolfberry land, i.e. the Mitchell Ranch land position"


"Our quick back of the envelope calculation... taking a conservative 45% discount... we would be looking at a share price of around $1.16 Canadian.  Bear in mind that we believe this is a conservative number based on a number of land sales we have seen in the area recently."


"The real kicker here is the Mitchell Ranch property, wherein Lynden owns a 50% position in roughly 67,000 contiguous acres with their JV partner Crownrock.  In addition, there is an additional 35,000 acres (50% Lynden's) which are very likely coming off lease to Chesapeake Energy on March 31, 2014 which is just 19 days away from putting Lynden's acreage ownership north of 50,000 acres in an area bordering the eastern edge of what many are now calling the most important oil asset in North America if not the entire globe."


"We have been hearing some rumors of very good, low cost production coming from the upper zones of the Wolfcamp just adjacent to Lynden's Spade 17 well... which could make this play comparable or even worth more than the acreage in the core Wolfberry play."


"We are getting the sense that the time is likely getting close wherein Lynden is going to pull the trigger on this land package (Wolfberry) and monetize it in a onetime sale."


Read the full article as its very bullish on Lynden's Wolfberry acreage and Mitchell Ranch potential.

Schaefer buys 50,000 shares of Lynden Energy and releases update

Keith Schaefer of the Oil and Gas Investments Bulletin recently purchased 50,000 shares of Lynden Energy and released an update.  He indicates that it's possible that Lynden could IPO their Mitchell Ranch acreage or option it to another group once/if Chesapeake loses their option.  He says that in a perfect world, they "sell the entire company and spin out Mitchell Ranch".  He appears to be very bullish on Lynden's potential.