Lynden Energy Reports Financial Results for the Nine Months Ended March 31, 2013

Lynden Energy Reports Financial Results for the Nine Months Ended March 31, 2013 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/30/13 -- Lynden
Energy Corp. (TSX VENTURE:LVL) (the "Company") reports its third
quarter 2013 results. Highlights for the nine months ended March 31,
2013 (the "Current Period"), compared to the nine months ended March
31, 2012 (the "Prior Period"), include: 


 
--  Total production increased 207% to 282,256 boe (1,030 boe/d) 
--  Gross revenues, net of royalties, increased 164% to $13,608,980 
--  Sale of 16 gross (7 net) Wolfberry Project wells, to BreitBurn Energy
    Partners L.P. for $25 million, effective December 1, 2012 (the
    "BreitBurn Sale")

 
Production for the nine months ended March 31, 2013 totaled 282,256
boe (1,030 boe/d). Production for the three months ended March 31,
2013 totaled 94,146 boe (1,047 boe/d), a decrease of 3.8% over
production in the three months ended December 31, 2012.  
All of the production is attributable to the Wolfberry Project. The
production mix, on a percent per boe basis, from the Wolfberry
Project is approximately 60% oil and 40% natural gas and associated
products.  
Financial Results for the 9 months and 3 months ended March 31, 2013 
This news release should be read in conjunction with the Company's
consolidated financial statements for the nine months ended March 31,
2013 and the notes thereto, together with the MD&A for the
corresponding period, which are available under the Company's profile
on SEDAR at www.sedar.com. All monetary references in this news
release are to U.S. dollars unless otherwise stated.  
Results of Operations  
The Company reported operating earnings of $4,553,868 for the Current
Period compared to operating earnings of $2,791,577 for the Prior
Period. The Company's net earnings of $11,108,632 and total
comprehensive income of $11,255,571 for the Current Period compared
to net earnings of $2,776,452 and total comprehensive income of
$2,686,408 for the Prior Period. Significant components of the
Current Period net earnings were net revenue of $13,608,890,
depletion and depreciation of $5,301,519, gain on disposition of
property, plant and equipment of $11,135,788, and income tax expense
of $4,576,074. 
Petroleum and Natural Gas ("P&NG") R
evenue 
The Company reported gross P&NG revenues of $18,010,917 (Prior Period
- $10,759,857) for the Current Period, all from its Wolfberry Project
wells. In conjunction with the revenues, the Company reported
royalties paid of $4,401,937 (Prior Period - $2,457,378) and paid
production and operating expenses of $2,372,429 (Prior Period -
$1,143,857) for the Current Period. The Company also incurred
$5,301,519 (Prior Period - $2,614,681) of depletion and depreciation
for the Current Period. Average realized prices for the Current
Period, were $86 per barrel ("Bbl") of oil and $4.77 per thousand
cubic feet ("Mcf") of natural gas, compared to $93 per Bbl of oil and
$7.91 per Mcf of natural gas, for the Prior Period. The natural gas
selling price is reflective of the thermal value of gas and
associated products sold. 
The Company also reported gross P&NG revenues of $5,766,998 for the
three months ended March 31, 2013 compared to $6,202,197 for the
three months ended December 31, 2012 ("Q2/2013"). In conjunction with
the revenues, the Company reported royalties paid of $1,437,162
(Q2/2013 - $1,571,024) and paid production and operating expenses of
$866,900 (Q2/2013 - $834,113) for the three months ended March 31,
2013. Average realized prices for the three months ended March 31,
2013 were $87 per Bbl of oil and $4.56 per Mcf of natural gas,
compared to $83 per Bbl of oil and $5.00 per Mcf of natural gas, for
Q2/2013. 
Liquidity - Borrowing Base Increases 
The Company has a $50 million reducing revolving line of credit.
Effective March 31, 2013, the line of credit had a $24 million
borrowing base, which amount has been subsequently increased to $29
million. There is currently $23.5 million drawn on the line of
credit. The Company is continuing to seek regular upward revisions of
the borrowing base. 
The Company anticipates financing the majority of its Wolfberry
Project capital expenditures through operating revenues and upward
borrowing base revisions on the line of credit.  
While the Company continues to have a working capital deficit at
March 31, 2013, it is the Company's view that the value of its P&NG
holdings is increasing at a rate significantly greater than the
working capital deficit. It is the Company's objective to sell
portions of its proven acreage in order to manage its working capital
position and to redeploy funds to its unproven acreage, where the
Company believes it can achieve the best returns for shareholders. 
Operations Highlights  
The Wolfberry Project  
The Company is currently carrying out a rapid oil and gas development
program on its Wolfberry Project, where the Company now has 53 gross
(22.07 net) wells tied-in and producing. At March 31, 2013, the
Company had 6 gross (2.36 net) wells spud or drilled awaiting
completion and/or tie-in.  
The Company's current plans call for 16 gross (6.68 net) Wolfberry
Project wells to spud in the balance of fiscal 2013 (April 1 to June
30, 2013) at an estimated cost to the Company of $16.0 million. The
Company's funding amount for the 6.68 net wells is equivalent to 7.63
wells. The gross cost of a Wolfberry well is currently approximately
$2.1 million. 
The Company's capital budget is subject to change depending upon a
number of factors, including economic and industry conditions at the
time of drilling, prevailing and anticipated prices for oil and gas,
the availability of sufficient capital resources for drilling
prospects, the Company's financial results and the availability of
lease extensions and renewals on reasonable terms.  
The Company anticipates significant increases in daily production
volumes as development of the Wolfberry Project continues. The
Company has targeted a June 30, 2013 net production exit rate, after
royalties, of approximately 1,200 boe/day. It is uncertain if this
target will be met by June 30, 2013. The Company has revised its June
30, 2013 net production target exit rate to between 1,000 and 1,200
boe/day. The Company has participated in the drilling of numerous
wells in the period from mid-April to mid-May, which wells are
anticipated to begin production prior to June 30, however delays in
the commencement of production from these wells, and the uncertainty
of the initial production rates from these wells could result in the
1,000 to 1,200 boe/day target being met in July/August. This guidance
is forward-looking information that is subject to a number of risks
and uncertainties, many of which are beyond the Company's control.  
Mitchell Ranch Project  
The Company's Mitchell Ranch project covers approximately 102,000
acres of P&NG leases located primarily in Mitchell County, West Texas
where the Company has a 50% working interest in approximately 67,000
acres, and a 1.25% overriding royalty interest on approximately
35,000 acres subject to a term assignment with a large, independent
exploration and production company.  
The Company currently has one (0.5 net) producing well, the Spade
17#1, where several rounds of completions have been carried out.
During the Current Period, the Company received $76,109 of net
revenue from sales from the Spade 17#1 well. The Mitchell Ranch
Project is in the exploration and evaluation stage and as such, the
net revenues have been credited to capitalized costs. 
As a result of significant new drilling activity in the general area
around the Mitchell Ranch Project the timing of the new wells has
been pushed out in order to best incorporate the results of other
operators into the development plan on the Mitchell Ranch Project.
The Company is currently participating in a seismic shoot over a
portion of the ranch as a preparatory step for a new well program.
Initial processing and interpretation of the new seismic data and of
the existing seismic data covering much of the ranch is expected in
the summer. 
About Lynden  
Lynden Energy Corp. is in the business of acquiring, exploring and
developing petroleum and natural gas rights and properties. The
Company has various working interests in the Wolfberry Project and
Mitchell Ranch Project, located in the Permian Basin in West Texas,
USA and in the Paradox Basin Project, located in the State of Utah,
USA.  
NI 51-101 requires that we make the following disclosure: we use oil
equivalents (boe) to express quantities of natural gas and crude oil
in a common unit. A conversion ratio of 6 mcf of natural gas to 1
barrel of oil is used. Boe may be misleading, particularly if used in
isolation. The conversion ratio is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.  
FORWARD-LOOKING STATEMENTS DISCLAIMER: This news release contains
forward-looking statements. The reader is cautioned that assumptions
used in the preparation of such statements, although considered
accurate at the time of preparation, may prove incorrect, and the
actual results may vary materially from the statements made herein.
Expectations of 16 gross (6.68 net) Wolfberry Project wells to spud
from April 1 to June 30, 2013, and expected timelines relating to oil
and gas operations are subject to the customary risks of the oil and
gas industry, and are subject to the company having sufficient cash
to fund the drilling and completion of these wells. Expectations of
obtaining upward borrowing base revisions on the line of credit are
subject to the customary risks of the oil and gas industry, and are
subject to drilling and completing successful wells, and prevailing
and anticipated prices for oil and gas, as well as being at the
discretion of the lender. The expectation of significant increases in
daily production volumes as development of the Wolfberry Project
continues as well as the expectation of achieving a June 30, 2013 net
production exit rate, after royalties, of 1,000 - 1,200 boe/day, are
subject to the customary risks of the oil and gas industry and is
subject to the Company drilling and completing successful wells. For
a more detailed description of these risks, and others, see
www.lyndenenergy.com/riskfactors.html.  
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. 
Contacts:
Lynden Energy Corp.
(604) 629-2991
(604) 602-9311 (FAX)
www.lyndenenergy.com
 
 
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