VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2012) - Lynden Energy Corp. (TSX VENTURE:LVL) reports that production net to Lynden, before royalties, from its Wolfberry Project in the Permian Basin, West Texas has averaged 900 barrels of oil equivalent ('boe') over the past 10 days, including two days in excess of 1,000 boe/day. Production net to Lynden, after royalties, averaged 700 boe/day. The production is from 37 gross (15.77 net) vertical Wolfberry wells and is approximately 65% oil and 35% gas and associated liquids.
An important contributor to this production growth is a recently drilled well in the Wind Farms Prospect Area which has performed considerably above expectations with the 30-day initial gross production averaging 176 barrels of oil and 565 mcf of gas per day, equivalent to 270 boe/day, and averaging 250 barrels of oil and 999 mcf of gas per day, or 416 boe/day over the last 10 of the 30 days. Lynden has a 43.75% working interest in this well before royalties.
The company's current plans call for the spudding of 37 gross (15.60 net) wells across the Wolfberry Project in calendar 2012, an increase over the previously announced 31 gross (12.97 net) wells. Twenty of the 37 wells remain to be spud. The company anticipates significant increases in daily production volumes as development of the Wolfberry Project continues and is targeting a December 31, 2012 net production exit rate, after royalties, in excess of 1,000 boe/day.
The company anticipates financing the majority of its Wolfberry Project capital expenditures through current working capital, operating revenues, upward borrowing base revisions on the $50 million reducing revolving line of credit with Texas Capital Bank, and potential asset sales.
The Wolfberry Project covers 18,413 gross and 16,493 net acres, equivalent to 6,509 acres net to Lynden.
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 37 gross (15.60 net) Wolfberry Project wells in calendar 2012, 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. Achieving a December 31, 2012 net production exit rate, after royalties, in excess of 1,000 boe/day is subject to the drilling of the expected number of wells and achieving positive results from those wells. For a more detailed description of these risks, and others, see www.lyndenenergy.com/riskfactors.html.
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:
Colin Watt
President and CEO
(604) 629-2991
(604) 602-9311 (FAX)
www.lyndenenergy.com