VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 17, 2014) - Lynden Energy Corp. (TSX VENTURE:LVL) (the "Company") reports that it anticipates spudding its first horizontal well in May on a 1,127 acre lease (the "Lease") in northern Martin County, West Texas. The well has a targeted lateral length of approximately 6,200 feet and will be operated by a Midland, Texas based company (the "Operator"). The well will target the Wolfcamp "B" horizon, which has been successfully tested in horizontal wells by several companies in the Midland Basin, including the Operator.
Pursuant to a recently executed purchase and sale agreement with an effective date of February 1, 2014 between the Company, as seller, and the Operator, as purchaser, the Company's working interest in the Lease and the five vertical wells on the Lease has decreased from 30.625% to 20.0%. As a result of prior Company obligations on the Lease, the Company will be funding 24.375% of the cost of the initial horizontal well, and subsequent wells, on the Lease. Net production lost to Lynden from the reduced interest in the wells sold is less than 10 barrels of oil equivalent per day.
Lynden Energy Corp. is in the business of acquiring, exploring and developing petroleum and natural gas rights and properties. The Company has various working interests in the Wolfberry Project and Mitchell Ranch Project, located in the Permian Basin in West Texas, USA.
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 its first horizontal well in May 2014, 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 http://lyndenenergy.com/risk-factors.
ON BEHALF OF THE BOARD OF DIRECTORS
LYNDEN ENERGY CORP.
Colin Watt, President and CEO