Mr. Colin Watt reports
LYNDEN ENERGY CORP.: RETURN OF TERM ASSIGNMENT ACREAGE INCREASES MITCHELL RANCH PROJECT TO 104,000 ACRES
As a result of the expiry of a term assignment entered into in June, 2011, approximately 34,000 leased acres in Lynden Energy Corp.'s Mitchell Ranch project have been returned to the company and its working-interest partner, CrownRock LP.
As a result of the returned acreage, the company's interest in the Mitchell Ranch project has reverted back to the approximately 104,000 acres originally leased. The company has a 50-per-cent working interest in the Mitchell Ranch project. The entire 104,000-acre lease can be held by continuous development every 90 days, with the next well required to be spudded prior to mid-June, 2014.
Locations for four to six vertical wells are currently being finalized for a new well program to be carried out between June and August, 2014. The wells are expected to be in proximity to the company's Spade 17 No. 1 well where several rounds of completions have been carried out over the past several years.
The new well program will incorporate the results of a recent 3-D seismic program that has identified multiple pay opportunities in the Ellenburger, Mississippian chert, Pennsylvanian limestone, Cline shale and Wolfcamp.
About the Mitchell Ranch project
The Mitchell Ranch project is located on the eastern shelf of the Permian basin, West Texas. The project is contained within a historical ranch that lies to the immediate west of the Jameson oil field and is approximately 10 miles southeast of the latan oil fields. The Mitchell Ranch project is focused on Permo-Pennsylvanian-aged detrital targets where there are numerous opportunities across several pay zones, all of which are shallower than 8,000 feet in drilling depth.
We seek Safe Harbor.
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