Lynden Energy Corp.
TSX VENTURE : LVL

Lynden Energy Corp.

July 13, 2010 19:16 ET

Lynden Energy Corp.: First Mitchell Ranch Well Drilled and Awaiting Completion, 5th Wolfberry Well Completed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2010) - Lynden Energy Corp. (TSX VENTURE:LVL) reports that the first well on the Company's recently acquired Mitchell Ranch Project, the Spade 17 #1, has been drilled to its target depth of 7,844 feet and is scheduled for completion operations over a two day period later this week.

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 first well site is on the west side of the ranch and is less than 2 miles from a well that has produced in excess of 190,000 barrels of oil equivalent. 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.

The second Mitchell Ranch Project well is anticipated to be spudded in approximately one week. The second location 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.

In addition, the fifth well on Lynden's Wolfberry Project, West Texas has been completed and is flowing back. A total of nine fracture stimulation stages were carried out in the completion of the well. The ultimate productive capability of the well remains unknown at this time. 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. Lynden is earning a 43.75% working interest in the well.

ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN ENERGY CORP.

Colin Watt, President and CEO

NI 51-101 requires that we make the following disclosure: we use oil equivalents (boe) to express quantities of natural gas and crude oil in a common unit. A conversion ratio of 6 mcf of natural gas to 1 barrel of oil is used. Boe may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 the second Mitchell Ranch Project well in approximately one week, 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.
    Andrea Magee
    (604) 629-2991
    (604) 602-9311 (FAX)