Lynden Energy (OTC Other: LVLEF; TSX-V: LVL), along with its working interest partner, CrownRock, have entered into a term assignment with a large, independent exploration and production company (“SeniorCo”), covering approximately 35,000 acres of the 103,400 acre Mitchell Ranch Project. Lynden and CrownRock have used the consideration paid by SeniorCo to exercise the option on the Mitchell Ranch Project. Accordingly, the entire 103,400 acre block has been converted to a single lease with a 36 month term which can be extended through subsequent continuous development on the lease.
Pursuant to the 30 month term assignment to SeniorCo, which can be extended by 90 day continuous development, Lynden and CrownRock retain a 2.5% (as to 1.25% each) overriding royalty interest on the term assignment acreage. The term assignment acreage is a contiguous block generally located in the southern third of the Mitchell Ranch Project.