Monday, July 28, 2014

RSP Permian enters into agreements for 6,652 net acres for $259 million

RSP Permian entered into agreements to purchase 6,652 net acres in Glasscock County for $259 million (click here).  Valuation metrics are $39,000/acre and $234k/flowing barrel.

Monday, July 21, 2014

Diamondback announces deal to purchase Midland Basin interests for $538 million

Diamondback Energy announced a deal to purchase leasehold interests in the Midland Basin for $538 million (click here).  The acquisition includes 13,136 net acres, 2,173 boe/d and 94 net producing wells.  Valuation metrics for this deal are $40,956/net acre and $247,584/flowing barrel.

Applying these metrics to Lynden Energy Corp.'s Wolfberry assets are as follows:

$40,956/net acre x 5,883 net acres = $241 million US ($1.80/share CAD)
$247,584/flowing barrel x 1,250 boe/d = $310 million US ($2.32/share CAD)

LVL's metrics do not include any valuation for their 51,000 acres at Mitchell Ranch.

Monday, June 9, 2014

New Mention of Lynden Energy

The Energy Report published an article today that mentions Lynden Energy (click here).  About 2/3 of the way into the article, Keith Schaefer mentions that Lynden has three big potential catalysts:
1. Lynden could sell its Wolfberry assets, he mentions a potential $130 million deal.
2. Fang is drilling a horizontal drill on Lynden's assets.
3. Lynden is drilling on Mitchell Ranch and if it hits, "it's a game changer for the company."

Thursday, May 15, 2014

New Lynden Energy Corporate Presentation

Lynden Energy Corp. posted a new Investor Presentation to their website (click here).

Tuesday, April 8, 2014

Crownquest applies for permit to drill at Mitchell Ranch

Crownquest, Lynden Energy's partner at Mitchell Ranch, applied for a permit to drill a new well named Spade17-3 offsetting the Spade 17-1 well that was previously drilled in 2010.

Thursday, April 3, 2014

Crude Energy acquires 50% working interest in Sterling County

Crude Energy acquires a 50% working interest in 3,680 acres located in Sterling County (click here).  They are targeting many of the same zones that Lynden Energy will be targeting at Mitchell Ranch in Sterling County.  No price has been disclosed but at least there is interest in this area.

Tuesday, April 1, 2014

Potential Lynden Valuation Scenarios

Should Chesapeake's share of Mitchell Ranch revert back to Lynden Energy and Crownquest, which is mentioned by Torrey Hills Capital and Keith Schaefer as a possibility, Lynden would have approximately 51,000 net acres at Mitchell Ranch.  In addition, Lynden has approximately 5,966 net Wolfberry acres.

Lynden's recent transaction with Breitburn at $48k/acre and Diamondback Energy's recent Wolfberry transaction at $61.5k/acre demonstrate the potential of the Wolfberry acreage.  One can determine Lynden's potential land valuation by assigning values to both their Woflberry and Mitchell Ranch acreage.  Assigning $20k/acre to $40k/acre for the Wolfberry and $2k/acre to $5k/acre for Mitchell Ranch and dividing by 143.5 million shares results in potential valuations of $1.54/share to $3.44/share. 

Lynden's exposure to these two plays makes this an interesting story with potential upside from the current $0.84/share price.  Many people have touted Lynden Energy over the past year or so including Keith Schaefer of the Oil and Gas Bulletin, Torrey Hills Capital/Baby Bulls, Cormark, Thom Calandra, and Mat Wilson of Pinetree.   Could this be Lynden's time?