Lynden Energy Corp.

Lynden Energy Corp.

April 25, 2008 09:00 ET

Lynden Energy Corp.: Paradox Basin Northern Prospect Pipeline Complete

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 25, 2008) - Lynden Energy Corp. (TSX VENTURE:LVL) reports that the construction and testing of a 21 mile gas pipeline in the Northern Prospect Area of its Paradox Basin Project is complete and that the S.P. Meyer #1 well has now been tied in and is producing. The completion of the pipeline represents a significant milestone in the overall development of the Company's Paradox Basin Project. The pipeline will act as a central trunk line through the Northern Prospect Area and will allow new wells drilled over a large area to be promptly tied into production.

A program of stimulation work on three recently drilled Northern Prospect Area wells, referred to as the Anteater State #1-21X, the Explorer State #1-16, and the Chanticleer #1-32, began earlier this week. Upon successful completion, the wells will be tied into the pipeline.

Drilling of the Northern Prospect Area Raider #1-17 exploratory well, located approximately 10 miles north-west of the S.P. Meyer #1, is underway. Success at the Raider #1-17, which is proximal to two 1950's wells that encountered significant gas, has the potential of opening up an additional area of focus in the Northern Prospect Area. The Raider #1-17 is less than 4 miles from the recently completed pipeline.

Lynden is a Canadian based oil and gas company with operations presently concentrated on gas prospects in the Paradox Basin, Utah. The Paradox Basin Project includes two contiguous oil and gas prospect areas totalling 1,525,000 acres. Lease holdings in the prospect areas cover in excess of 115,000 acres.

The operator, a middle tier Texas-based oil and gas company, is targeting gas production from shales and other Paradox Basin lithologies. The operator's exploitation program is based on commingling production from multiple zones, which has been successfully done by other operators in the Paradox Basin.

The 900,000 acre Northern Prospect Area includes leases covering in excess of 100,000 acres. Lynden has a 55% before payout working interest (41.25% after payout working interest) in an 80% net revenue interest in the Northern Prospect Area. The 625,000 acre Southern Prospect Area includes leases covering in excess of 15,000 acres. Lynden has a 25% before payout working interest (23.75% after payout working interest) in an 85% to 87% net revenue interest in the Southern Prospect Area.



Colin Watt, President and CEO

WARNING: This news release contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, although considered accurate at the time of preparation, may prove incorrect. The actual results may vary materially from the information provided herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lynden Energy Corp.
    Colin Watt
    President and CEO
    (604) 629-2991
    (604) 602-9311 (FAX)