Lynden Energy Corp. (TSX-V: LVL and OTC Other: LVLEF) reported that further to its July 13, 2011 news release, the Company’s wholly owned subsidiary, Lynden USA Inc., has secured a three year reducing revolving line of credit (the “Credit Facility”) in an amount up to US$50 million with Texas Capital Bank of Dallas, Texas. The Credit Facility provides for an initial borrowing base of US$9.5 million.
Great news from Lynden and the last piece of the puzzle for funding their 2011 drill campaign – previously announced at roughly 18 new wells which will be focused in their core Wolfberry (TX) play, with possibly several wells slated for the Mitchell Ranch area to further define a productive zone discovered from the Spade 17 #1 well. Once these wells come on line, we expect a material upgrade to Lynden’s daily production levels/proven reserve line and eventual rerating of their stock value.
With recent reports of declining overall oil production in a number of major oil production countries, the value proposition of Company’s such as Lynden that have oil-centric domestic production with great resource/reserve upside becomes even more compelling.