Lynden Energy Corp.
TSX VENTURE : LVL

Lynden Energy Corp.

April 17, 2008 13:52 ET

Lynden Energy Corp.: $1.75 Million Private Placement Closes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2008) - Lynden Energy Corp. (TSX VENTURE:LVL) reports that it has closed the previously announced non-brokered private placement in the amount of $1,750,000. These funds were raised by the company issuing a total of 2,500,000 units at a price of $0.70 per unit. Each unit is comprised of one common share and one share purchase warrant entitling the holder to purchase one additional common share at a price of $1.00 until April 15, 2009 and $1.25 until April 15, 2010.

The shares issued pursuant to the private placement, and any shares to be issued on exercise of the warrants are subject to a hold period expiring August 16, 2008. Finder's fees of $63,700 will be paid in connection with the private placement.

Lynden is a Canadian based oil and gas company with operations 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.

ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN ENERGY CORP.

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)