April 4, 2012
Lynden Energy (OTC Other: LVLEF; TSX-V: LVL) produced more than 500 barrels of oil equivalent per day, net to Lynden, from its 30 (12.86 net) Wolfberry Project wells during the ten day period ended March 31, 2012. The highest daily production during the period was 595 barrels of oil equivalent.
The Company is continuing with its aggressive Wolfberry Project development plan which calls for the drilling of 31 gross (12.97 net) Wolfberry wells in calendar 2012, of which 4 gross (1.75 net) wells have now been drilled, completed and tied-in to production.
On the Company’s Mitchell Ranch Project, two new wells have been scheduled for drilling in the area of the Spade #17-1 in June / July with the objective of developing the Wolfcamp zone that is producing in the Spade #17-1. This zone is at a depth of approximately 5,000 feet.
January 31, 2012
Lynden Energy (OTC Other: LVLEF; TSX-V: LVL) has drilled its first Tubb Prospect Well in West Texas to a total depth of 9,545 feet, and in late December 2011, 12 stages of fracture stimulation were carried out. In addition to several completion stages in the Wolfcamp formation, completions were also carried out in the deeper Cisco, Canyon, Strawn, Atoka and Mississippian formations.
In early January, the well was tied into production and has averaged 109 barrels of oil per day and 264 barrels of water per day in the 23 days since the well was tied-in. The well has also produced 106 mcf of gas per day in the eleven days since the measurement of gas began. Oil gravity from the Tubb A #1 is estimated to be 43 degrees API.
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. Successful results in the Tubb Prospect Area could allow for the drilling of approximately 170 gross wells, at 40 acre spacing, on currently leased acreage.
January 9, 2012
By Thom Calandra
Energy investing ideas are occasionally my cup of coffee. Years ago, five or so years of my almost 30-year newspaper career was covering Chevron Corp., which was based in San Francisco. On the wire front, those who followed me at my MarketWatch.com got my takes on alternative energy, on Oklahoma natural gas and on other LNG (liquid natural gas) investments.
I know some of the new energy crowd, among them Ross Beaty of hydrothermal Alterra Energy, Robert Friedland of Ivanhoe Energy … a few uranium prospectors from Saskatchewan and Australia … and a collection of rock geologists who started their careers in petroleum. At Bloomberg in London, I was right around the corner from Royal Shell central. North Sea oil traders and shippers are thick as the trees in Sherwood Forest in the city of London.
The other day, looking at our roster of Torrey Hills Capital clients, I came across Lynden Energy (TSX-V: LVL; OTC: LVLEF). I did a double-take; about two years ago, I asked geologist Raul Madrid and a partner of his, Richard Andrews, over to breakfast to hear about their Texas lone star Lynden. (See Thom’s original article.)
December 14, 2011
Lynden Energy Corp. (TSX-V: LVL; OTC Other: LVLEF) reported that subject to TSX Venture Exchange acceptance, it intends to conduct a normal course issuer bid to purchase for cancellation up to 4,730,526 of its common shares representing approximately 5% of its issued and outstanding share capital. The normal course issuer bid will be conducted through the facilities of the TSX Venture Exchange.
November 15, 2011
NAPA, California – Pioneer Nevada & Colombia geologist Raul Madrid died suddenly earlier this month. He was 66.
Dr. Madrid and I met several times over the years, as recently as this past spring. He lived in Napa, California, not far from where I live. Dr. Madrid launched many companies during his career. He was a former vice president of exploration for Nevada’s Victoria Gold. He and another colleague, Ralph Roberts, worked along Nevada’s prolific Carlin Trend for many years. Dr. Roberts was considered the father of the Carlin Trend.
“The exploration community lost a dedicated geologist,” said Dr. Paul Zweng, a fellow geologist and one of Raul Madrid’s students and co-workers. “He hired me to work with Ralph Roberts in Nevada.”
Raul Madrid earned his doctorate at Stanford University under a National Science Foundation Fellowship in geology. He is credited with pioneering work in Nevada, in Colombia and in Spain. See: Related article.
October 14, 2011
Lynden Energy (OTC Other: LVLEF; TSX-V: LVL) continues with a rapid oil and gas development program on its Wolfberry Project where the Company now has 19 gross (8.1 net) wells tied-in and producing. The Company’s share of production, after royalties, from these wells has averaged approximately 423 barrels of oil equivalent over the last 30 days. Production is predominantly oil (approx. 72%). In addition to these wells, the Company has 2 gross (0.9 net) wells that have been drilled and are awaiting tie-in or completion, and an additional 6 gross (2.5 net) wells are expected to spud before December 31, 2011. Current plans call for 31 gross (13.2 net) Wolfberry Project wells to spud in 2012.
At Mitchel Ranch, there is a single lease covering approximately 103,400 gross and net acres, located in Coke, Mitchell, and Sterling counties of West Texas. The Company has a 50% working interest in the 67,400 acres located in the northern portion of the ranch and a 1.25% overriding royalty interest in the 36,000 acres that are subject to term assignment with a large, independent exploration and production company. The Company currently has one (0.5 net) producing well on the project, the Spade 17 #1, where several rounds of completions have been carried out to determine a development plan for the project. The most recent completion was undertaken in late May, and targeted a Lower Wolfcamp zone between 4,900 and 5,000 feet. In the 125 days since oil production from this interval began, the well has averaged 53 barrels of oil per day. This is the third oil productive interval in this well.
September 1, 2011
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.
July 13, 2011
Lynden Energy (TSX-V: LVL and OTC Other: LVLEF) reported today that it has executed a preliminary term sheet with Texas Capital Bank of Dallas, Texas which contemplates the provision of a three year reducing revolving line of credit in an amount up to US$50 million. If implemented, the Credit Facility will provide for an initial borrowing base of US$9.5 million.
The Credit Facility will bear interest determined by the percent of the borrowing base utilized and by elections made by the company. A minimum interest rate of 4.5% is required on borrowings under the Credit Facility. Payments under the Credit Facility will be required to the extent that outstanding principal and interest exceed the borrowing base. Other fees will also apply.
July 5, 2011
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.
June 7, 2011
Lynden Energy (OTC Other: LVLEF; TSX-V: LVL) recently completed a Lower Wolfcamp zone between 4,900 and 5,000 feet, which for the last 8 days since oil production began, has averaged an estimated 84 barrels of oil and 15 mcf of gas per day. The well has averaged 67 barrels of water per day over the same period and it is estimated that the well still has approximately 58% of the total load from the completion to recover. This is the third oil productive interval in this well.
There is more work to do, but these results indicate that the Company is on the right track and that, with fingers crossed, additional similar good news will be forthcoming.