Lynden Ventures Ltd.
TSX VENTURE : LVL

June 12, 2006 09:00 ET

Lynden Ventures Ltd.: Paradox Basin Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 12, 2006) - Mr. Colin Watt, President of Lynden Ventures Ltd. (TSX VENTURE:LVL), provides an update on the Paradox Basin Project, Utah, where the company is targeting unconventional opportunities (Pennsylvanian carbonaceous shales), as well as the more conventional pay zones (Pennsylvanian sandstones and algal mounds) of the Paradox Basin. The company's Paradox Basin Project lease holdings presently cover in excess of 84,500 acres.

As a starting point for the advancement of the project, numerous well re-entry candidates were identified on the company's acreage. The operator, a middle tier Texas-based oil and gas company, began re-entry operations on a first well in late March 2006 in order to test completion procedures and confirm the presence of hydrocarbons in the targeted zones. After initial difficulties due to hole conditions, the operator successfully re-entered the well, and ran and cemented casing.

Two zones in the well were separately perforated and fracture stimulated. Gas was observed and flared from both zones however production from both zones was inhibited and not sustained. The inhibition was attributed to incomplete load recovery, some fines production along with high salinity water. The operator was not able to accurately measure gas production rates in the lower zone (estimates from flaring were 100 MscfD). A measured IP on the upper zone was 400 MscfD. Tracer surveys showed limited penetration into adjacent evaporites and there are no logging signatures for water; consequently, the source of the high salinity water is not currently understood.

Significantly, the operator and management believe that the results of the re-entry operations have confirmed the presence of producible gas in the targeted zones. The re-entry operations have also provided significant information about completion procedures in these zones that will be applied in subsequent re-entry wells and in new wells. The operator's exploitation program is based on co-mingling multiple unconventional zones, which has been successfully achieved by other operators in the Paradox Basin.

There are no plans to attempt to produce from the well in the near term, as the well is located in a lower maturity part of the Project area, away from infrastructure; existing tie-ins are located on the opposite side of the Project area.

The rig has now been moved off this well, however there remains a third uppermost zone of interest that remains to be tested. Larger-volume re-fracturing of the two treated zones is also being considered for a later date.

The rig has been mobilized to a second re-entry well. If the well can be successfully re-entered, a conventional zone will be tested. The second re-entry well candidate was drilled as an oil test in the mid-1950's and based on records and oral history encountered gas in a conventional zone.

Concurrent with the re-entry of the second well the operator is making preparations to re-enter and test unconventional zones in a third well.

Lynden holds an 80% working interest, subject to 25% back-in after payout, in the Paradox Basin Project.

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.

Contact Information

  • Lynden Ventures Ltd.
    Colin Watt
    President and CEO
    (604) 629-2991
    (604) 602-9311 (FAX)