Lynden Ventures Ltd.
TSX VENTURE : LVL

Lynden Ventures Ltd.

November 08, 2006 17:18 ET

Lynden Ventures Ltd.: Additional Results on Second Paradox Basin Project Well

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2006) - Further to Lynden Ventures Ltd.'s (TSX VENTURE:LVL) news release dated November 1, 2006 wherein it was reported that the two bottommost shale targets in its second Paradox Basin Project re-entry well had flared significant quantities of gas, Lynden has been advised by the project operator and well site engineer that, based on visual estimates, the uppermost of two shale zones completed is flaring gas at a rate of in excess of 2 million cubic feet per day. It is estimated that the lower zone flared gas at a rate of 150 thousand cubic feet per day.

Both zones were completed with large volume, high rate slickwater fracturing treatments. As a consequence of the high volume treatments only approximately 15% of the fracture fluid has been recovered to date from the second zone treated. This is not uncommon in reservoirs such as this and recovery in analogue basins is frequently not more than 30% of the fracturing fluid volume. A quantitative flow test will be carried out on the upper zone after a greater portion of the fracture fluid has been recovered. It is not known when this test will be carried out because load fluid is still being recovered.

The operator continues to flow back the upper zone, which is currently producing fracturing fluid and flaring a consistent 6 to 10 foot flare through a 2 inch choke. To date, production alone from this upper zone has not been able to keep the well unloaded. Recovered treatment fluid lift has been assisted with an air package. The operator believes that, unassisted, the well loads up as a result of returning treating fluid. Commercial production often requires gas lift to remove stimulation fluids in known shale-gas production areas such as the Barnett Shale.

Flow estimates can be misleading under the conditions encountered; i.e., returning load fluid and air assist to lift this fluid. As a result, readers are cautioned that the flow rates reported above may not be directly indicative of the productive capability of the well and should not be interpreted as an initial production rate.

While the results to date are not definitive, both the operator and Lynden interpret the well's performance as extremely encouraging and the results provide guidance for the exploration and development of the greater than 93,000 acres that are held by Lynden and its partners in the Paradox Basin Project.

Work on this second re-entry well is being carried out by the project operator, a middle tier Texas-based oil and gas company with substantial experience in the area. Additional shale and conventional sand zones will be tested up-hole over the coming weeks.

About the Second Re-entry Well

The well described above is a re-entry into a well that had been drilled in the mid-1950's as an oil test. Based on records and oral history, the operator encountered gas in a conventional (sand) zone, uphole of where the current completions have been carried out. The re-entry was originally designed to test this sand. The original well had been drilled substantially beyond this sand and the underlying barefoot section had been abandoned with a bridge plug. During re-entry, the operator was able to re-enter the well, remove a damaged legacy string and then run and cement new casing to total depth. As a consequence, lower shales as well as additional sands were accessed for testing.

About the Paradox Basin Project

The Paradox Basin Project covers a conventional and unconventional oil and gas prospect area established by Lynden, its working interest partners, and the project operator, a middle tier Texas-based oil and gas company.

The company's Paradox Basin Project lease holdings in the prospect area presently cover in excess of 93,000 acres. Lynden holds an 80% working interest, subject to 25% back-in after payout, in the Paradox Basin Project. Much of the historical production in the Paradox Basin has been from Pennsylvanian sandstones and algal mounds, and to a lesser extent from Pennsylvanian carbonaceous shales. Lynden and the project operator believe that there are significant opportunities for bypassed production within the prospect area.

The primary target in Lynden's Paradox Basin Project will be unconventional opportunities; however, the more conventional pay zones of the Paradox Basin will also be targeted. The operator's exploitation program is based on co-mingling production from multiple zones, which has been successfully done by other operators in the Paradox Basin.

ON BEHALF OF THE BOARD OF DIRECTORS LYNDEN VENTURES LTD.

Colin Watt, President and CEO


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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