Lynden Energy Corp.
TSX VENTURE : LVL

Lynden Energy Corp.

May 05, 2011 16:05 ET

Lynden Energy Corp.: Wolfberry Project Activity Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) - Lynden Energy Corp. (TSX VENTURE:LVL) provides an update on its Wolfberry Project, located in the Permian Basin, West Texas, where the Company continues with a rapid oil and gas development program.

West Martin Prospect Area

Since the Company's update of February 7, 2011, two new Wolfberry wells have been drilled in the West Martin prospect area; one has been completed and is expected to be tied-in to production in the next few days, and one is expected to be completed within the next three weeks. Drilling of a third new well is currently underway, and upon reaching total depth the drilling rig will be mobilized to the first of three sequential additional drill locations in the West Martin prospect area. The last well in the sequence is currently anticipated to be spud prior to June 30, 2011.

Lynden is funding 50% of the cost of the wells to earn a 43.75% working interest. Lynden has the option to earn a 43.75% interest in leases in the West Martin prospect area covering approximately 5,286 gross (4,899 net) acres located primarily in Martin County. The Company currently anticipates drilling 5 additional Wolfberry wells in the West Martin prospect area between July 1 and December 31, 2011.

Wind Farms Prospect Area

Since the Company's update of February 7, 2011, one new well has been spud and is currently approaching its target depth. Two additional wells are to be drilled with the same drilling rig immediately following this well. All three wells are currently anticipated to be drilled to their target depths prior to June 30, 2011.

All three wells will be located within a 2,720 acre contiguous block of leases where the Company has two producing Wolfberry wells. Lynden is funding 50% of the cost of the wells to earn a 43.75% working interest.

Lynden has the option to earn a 43.75% interest in leases in the Wind Farms prospect area covering approximately 3,350 gross (2,373 net) acres located in Glasscock County. The Company currently anticipates drilling 3 additional Wolfberry wells in the Wind Farms prospect area between July 1 and December 31, 2011.

Current Wolfberry Project Production

The Company currently has 8 gross producing Wolfberry Project wells. In the month of April the Company's net production, before royalties, from the wells averaged 190 barrels of oil and 470 mcf of gas per day, or 268 barrels of oil equivalent per day (conversion ratio of 6 mcf of natural gas to 1 barrel of oil). Over the past 10 days, production from the wells averaged 168 barrels of oil and 473 mcf of gas per day, or 247 barrels of oil equivalent per day. Production figures reported do not include natural gas liquids, an important economic contributor.

About the Wolfberry Project

The Wolfberry play is a major low-permeability oil play in the Midland Basin, with targets generally located between 7,000 and 11,500 feet drilling depth. The primary objectives of the play are oil (and gas) production from the Spraberry and Wolfcamp formations, which are Permian in age and are informally grouped to form the 'Wolfberry' interval or zone. Over time, the play has evolved to include additional zones below the Wolfcamp. Typical Wolfberry wells involve completions, which can include 8 to 12 fracture stimulations, over a 2,500 to 3,000 foot gross interval.

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

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 three new wells on the West Martin prospect by June 30, 2011, drilling 5 additional wells on the West Martin propsect area between July 1 and December 31, 2011, drilling three new wells on the Wind Farms prospect area by June 30, 2011 and drilling 3 additional wells on the Wind Farms propsect area between July 1 and December 31, 2011 and expected timelines relating to oil and gas operations are subject to the customary risks of the oil and gas industry, and are subject to the company having sufficient cash to fund the drilling and completion of these wells. 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.

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