Lynden Energy Corp.
TSX VENTURE : LVL

Lynden Energy Corp.

October 06, 2010 17:58 ET

Lynden Energy Corp. $7,000,000 Private Placement, 6 Wolfberry Wells to Spud by Year End

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) -

NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Lynden Energy Corp. (TSX VENTURE:LVL) reports that it has arranged a non-brokered private placement in the amount of $7,000,000. These funds will be raised by the company issuing units at a price of $0.50 per unit. Each unit is comprised of one common share and one common share purchase warrant. Each share purchase warrant will entitle the holder to purchase one additional common share at a price of $0.70 for a period of 3 years.

The funds raised from this private placement will be used for the company's oil and gas projects, and for general working capital purposes. Fees and/or commissions will be payable in connection with a portion of the private placement. The private placement is subject to the approval of the TSX Venture Exchange.

In addition, the company has recently authorized and returned to the Wolfberry Project operator, AFE's for 6 new Wolfberry wells. These wells will add to the company's existing five producing Wolfberry Project wells. Four of the six new wells will be located in the West Martin prospect area, where Lynden is funding 50% of the cost of the wells to earn a 43.75% working interest. One well will be located in the Wind Farms prospect area where Lynden is funding 50% of the cost of the well to earn a 43.75% working interest, and one well will be located in the Sugg Ranch prospect area where Lynden is funding 38.69% of the cost of the well to earn a 33.85% working interest. One well in each of the West Martin and Wind Farms prospect areas is scheduled to be spudded before the end of October. The other four wells are scheduled to be spudded before the end of the year.

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. 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.

Lynden is a Canadian-based oil and gas company with operations focused on our Wolfberry and Mitchell Ranch projects in the Permian Basin, West Texas, and our Paradox Basin Project, Utah.

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 6 additional Wolfberry Project wells before the end of the year is subject to the company closing the $7,000,000 private placement. Expectations of spudding 6 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)