Lynden Energy Corp.

Lynden Energy Corp.

September 28, 2009 09:01 ET

Lynden Energy Corp.: Expansion of Activities Into West Texas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2009) - Lynden Energy Corp. (TSX VENTURE:LVL) reports that its subsidiary, Lynden USA Inc., has entered into a Participation Agreement to acquire an interest in oil and gas leases covering approximately 13,300 gross acres in Glasscock, Howard, Martin, Midland and Sterling counties of West Texas, USA.

The leases are contained within five prospect areas around which five areas of mutual interest ('AMI') have been established.

Prospect Name County Gross Acres Net Acres Size of Lynden's Net
AMI Acres Interest
Wind Farms Glasscock 2,240 2,000 17,280 43.75%
Tubb Howard 6,860 6,494 19,840 21.875%
West Martin Martin 1,550 1,303 184,320 43.75%
Miller Trust Midland 640 640 640 43.75%
Sugg Ranch Sterling 2,026 1,626 92,160 33.85% to 43.75%

Lynden will receive 43.75% of the vendor's interest in the leases relating to wells drilled after the date of the Participation Agreement on the vendor's existing acreage and within the areas of mutual interest, by paying 50% of the drilling and completion costs attributable to the vendor's interest. Lynden will also pay for the first US$2,000,000 spent in connection with any new leases or extensions of existing leases on lands located within the AMIs, of which Lynden will spend at least US$666,666.67 each year for the first three years.

West Texas has experienced a resurgence in oil-focused exploration and development activity as a result of new completion methods being applied to an unconventional rock package from the Permian Basin, historically one of the most prolific oil basins in North America. The primary objectives 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. Completions are anticipated from a 2,500 to 3,000 foot gross interval generally located between 7,000 to 10,000 feet, drilling depth. In addition to this main objective, other conventional and unconventional productive zones occur both above and below the main Wolfberry assemblage.

CrownQuest Operating LLC, the operator of the prospects, is based in Midland, Texas and has extensive knowledge and experience in operating in West Texas. In the last two years, the operator has drilled or participated in over 40 new wells where the new completion techniques have been successfully applied in areas adjacent, or in proximity, to the AMIs established under the Participation Agreement.

The operator, together with Lynden, is currently finalizing initial drill locations.



Colin Watt, President and CEO

CAUTIONARY NOTE: 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. Consequently, there is no representation by Lynden that gross completion intervals will be 2,500 to 3,000 feet. Actual intervals selected for completion 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 Ventures Ltd.
    Colin Watt
    President and CEO
    (604) 629-2991
    (604) 602-9311 (FAX)