Lynden Energy Corp.
TSX VENTURE : LVL

Lynden Energy Corp.

August 24, 2010 09:00 ET

Lynden Energy Corp.: West Texas Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2010) - Lynden Energy Corp. (TSX VENTURE:LVL) provides the following update on the Company's Wolfberry and Mitchell Ranch Projects:

Wolfberry Project

The Company's fifth Wolfberry well, completed in mid-July, began to produce oil 21 days ago after first flowing back for several weeks. The well has averaged 80 barrels of oil and 190 mcf of gas per day over the last ten days (63 barrels of oil and 117 mcf of gas per day since the date of first production). Lynden has earned a 33.85% working interest in the well. The ultimate productive capability of the well remains unknown at this time.

Management is encouraged by the initial results from the well and the positive implications for potential development across the 2,026 gross (1,626 net) acre contiguous land package on which the well was drilled. Lynden can earn working interests in this land package which range from 33.85% to 43.75%.

Production from the Company's other four Wolfberry Project wells continues within expected ranges. While production is predominantly oil, the Company continues to receive a premium price for its gas as a result of its high natural gas liquids content. The Company and the project operator are currently making plans for the spudding of 5 additional Wolfberry Project wells before the end of the year.

The Company continues to acquire additional acreage in its Wolfberry Project which now covers approximately 18,000 gross (15,500 net) acres in Glasscock, Howard, Martin, Midland, and Sterling counties of West Texas.

Wolfberry wells primarily target oil (and gas) production from the Spraberry and Wolfcamp formations, which are of Permian age and informally grouped to form the "Wolfberry" interval or zone. Secondary targets are also being evaluated for completion as part of Lynden's Wolfberry Project. Typical Wolfberry wells involve completions over a 2,500 to 3,000 foot gross interval, generally located between 7,000 and 11,000 feet, drilling depth.

Mitchell Ranch Project

Spade Ranch 17 #1, the first Mitchell Ranch Project well, was completed in late July and has been flowing back since the beginning of August. The second Mitchell Ranch Project well, the Spade 14 #1, has been drilled to its target depth of 7,240 feet and a first phase of completions was carried out on August 20th. A second phase of completions is scheduled for late October. The completions have been staggered into two phases to allow for optimal evaluation of the targeted zones.

The Mitchell Ranch Project, acquired in early June, provides Lynden with the option to acquire a 50% working interest in 101,495 gross and net acres located in Coke, Mitchell, and Sterling counties of West Texas. All acreage is contained within a historical ranch that lies to the immediate west of the Jameson oil field and is approximately 10 miles south-east of the Iatan oil field. The Spade 14 #1 is on the eastern side of the property, approximately 4 miles north-west of the Jameson field, and 14 miles east of the Spade 17 #1. The Mitchell Ranch Project is focused on Permo-Pennsylvanian-aged detrital targets along the eastern shelf of the Permian Basin where there are numerous opportunities across several pay zones, all of which are shallower than 8,000 feet in drilling depth.

ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN ENERGY CORP.

Colin Watt, President and CEO

FORWARD-LOOKING STATEMENTS DISCLAIMER: This news release contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such statements, although considered accurate at the time of preparation, may prove incorrect, and the actual results may vary materially from the statements made herein. Expectations of spudding 5 additional Wolfberry Project wells before the end of the year is subject to the Company obtaining additional financing. Expectations of spudding 5 additional wells before the end of the year and expected timelines relating to oil and gas operations are subject to the customary risks of the oil and gas industry. For a more detailed description of these risks, and others, see www.lyndenenergy.com/riskfactors.html. Actual intervals selected for completion and number of fracture stimulation stages will be determined based on information available at the time the completions are initiated.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

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