VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2011) - Lynden Energy Corp. (TSX VENTURE:LVL) is pleased to report significant results from an uphole completion in the Spade 17 #1 well on the Mitchell Ranch Project. The completion, undertaken in late May, targeted a Lower Wolfcamp zone between 4,900 and 5,000 feet. In the eight days since oil production began it is estimated that the well has averaged 84 barrels of oil and 15 mcf of gas per day. The well has averaged 67 barrels of water per day over the same period and it is estimated that the well still has approximately 58% of the total load from the completion to recover. This is the third oil productive interval in this well.
Management is extremely encouraged by the initial production volumes from this recent completion.
The lateral extent of this oil pay zone will ultimately need to be determined through additional development drilling, however it is believed that 3D seismic will be capable of further defining targets.
In a news release dated February 7, 2011, the Company reported that a multi-stage fracture stimulation had been completed on the Spade 17 #1 and that the well had produced oil and gas at rates that exceeded the economic threshold for wells of this depth (TD of 7,844 feet). The lower zones in the well are isolated from the recent uphole completion, and the production quantities reported above only include production from the latest completion interval.
Interpretive work has been carried out over the past several months to determine the source of the oil previously produced from the lower zones in the well. It has been determined that the oil was produced from two stratigraphically different zones 1,700 feet apart.
The Company, and its partner, will continue to monitor production from the uphole zones for several weeks prior to determining the next stage of development on the Mitchell Ranch Project.
The Mitchell Ranch Project provides Lynden with the option to acquire a 50% working interest in excess of 100,000 gross and net acres located in Coke, Mitchell, and Sterling counties of West Texas. All acreage is contained within a historical ranch that lies to the immediate west of the Jameson oil field and is approximately 10 miles south-east of the Iatan oil field. The Mitchell Ranch Project is focused on Permo-Pennsylvanian-aged detrital targets along the eastern shelf of the Permian Basin where there are numerous opportunities across several pay zones, all of which are shallower than 8,000 feet in drilling depth. To date Lynden and its partner have drilled two wells on the project, the Spade 17 #1 and the Spade 14 #1. The Spade 14 #1 produced limited quantities of oil and gas after several stages of completions, and consequently additional work on the well has been suspended. The Spade 14 #1 is on the eastern side of the property, approximately 4 miles north-west of the Jameson field, and the Spade 17 #1, approximately 14 miles west of the Spade 14 #1.
Lynden is a Canadian-based oil and gas company with operations focused on our Wolfberry and Mitchell Ranch projects in the Permian Basin, West Texas, and our Paradox Basin Project, Utah.
ON BEHALF OF THE BOARD OF DIRECTORS
LYNDEN ENERGY CORP.
Colin Watt, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contact Information:
Colin Watt
President and CEO
(604) 629-2991
(604) 602-9311 (FAX)
www.lyndenenergy.com