Lynden Energy Reports Financial Results for the Six Months Ended December 31, 2013

Lynden Energy Reports Financial Results for the Six Months Ended December 31, 
2013 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/28/14 -- Lynden
Energy Corp. (TSX VENTURE:LVL) (the "Company") reports its second
quarter 2014 results. Highlights for the six months ended December
31, 2013 (the "Current Period"), compared to the six months ended
December 31, 2012 (the "Prior Period"), include:  


 
--  Total production increased 157% to 294,365 boe (1,598 boe/d) 
--  Gross revenues, net of royalties, increased 173% to $16,016,198 
--  Sale of 12 gross (4.7 net) Wolfberry Project wells, to BreitBurn Energy
    Partners L.P. for $19.3 million, effective December 30, 2013. (the
    "BreitBurn Sale") 

 
Production for the six months ended December 31, 2013 totaled 294,365
boe (1,598 boe/d). Production for the three months ended December 31,
2013 totaled 141,277 boe (1,536 boe/d), a decrease of 8% over
production in the three months ended September 30, 2013. Production
volumes in November and December 2013 were negatively impacted as a
result of suspensions of production due to severe winter weather
conditions. 
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 6 months and 3 months ended December 31,
2013 
This news release should be read in conjunction with the Company's
consolidated financial statements for the six months ended December
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 $18,385,808 for the
Current Period compared to operating earnings of $14,486,807 for the
Prior Period. The Company's net earnings of $12,595,155 and total
comprehensive income of $12,295,936 for the Current Period compared
to net earnings of $10,485,597 and total comprehensive income of
$10,648,864 for the Prior Period. Significant components of the
Current Period net earnings were net revenue of $15,942,860,
depletion a
nd depreciation of $4,716,132 gain on disposition of
property, plant and equipment of $9,937,842 and income tax expense of
$5,780,000. 
Petroleum and Natural Gas ("P&NG") Revenue 
The Company reported gross P&NG revenues of $20,888,456 (Prior Period
- $12,243,919) for the Current Period, all from its Wolfberry Project
wells. In conjunction with the revenues, the Company reported
royalties paid of $4,872,258 (Prior Period - $2,964,775) and paid
production and operating expenses of $2,148,810 (Prior Period -
$1,505,529) for the Current Period. The Company also incurred
$4,716,132 (Prior Period - $3,485,932) of depletion and depreciation
for the Current Period. Average realized prices for the Current
Period, were $98 per barrel ("Bbl") of oil and $4.65 per thousand
cubic feet ("Mcf") of natural gas, compared to $86 per Bbl of oil and
$4.89 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 $9,305,437 for the
three months ended December 31, 2013 compared to $6,202,197 for the
three months ended September 30, 2013 ("Q1/2014"). In conjunction
with the revenues, the Company reported royalties paid of $2,174,904
(Q1/2013 - $1,571,024) and paid production and operating expenses of
$1,154,131 (Q1/2013 - $834,113) for the three months ended December
31, 2013. Average realized prices for the three months ended December
31, 2013 were $94 per Bbl of oil and $4.85 per Mcf of natural gas,
compared to $101 per Bbl of oil and $4.42 per Mcf of natural gas, for
Q1/2014. 
Liquidity  
The Company has a $100 million (increased from $50 million subsequent
to December 31, 2013) reducing revolving line of credit. Effective
December 31, 2013, the line of credit had a $25 million borrowing
base of which $12.25 million was outstanding. The amount drawn on the
line of credit has decreased from $29 million at September 30, 2013
primarily as a result of applying a portion of the proceeds of the
December 30, 2013 BreitBurn Sale against the outstanding amount. 
The Company anticipates financing the majority of its Wolfberry
Project capital expenditures through operating revenues, draw downs
on the line of credit, and cash on hand at December 31, 2013 of
approximately $14.5 million.  
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 75 gross
(31.0 net) wells tied-in and producing. As a result of the BreitBurn
Sale, during the three months ended December 31, 2013 there was a net
decrease of 4 gross (2.0 net) wells tied into production. At December
31, 2013, the Company had 3 gross (1.27 net) wells spud or drilled
awaiting completion and/or tie-in.  
The Company's current plans call for 24 gross (9.92 net) Wolfberry
Project wells to spud in the balance of calendar 2014 (March 1 to
December 31, 2014) at an estimated cost to the Company of $23.8
million. The Company's funding amount for the 9.92 net wells is
equivalent to 11.34 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. 
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 $46,829 of net
revenue from sales from the Spade 17#1 well. The most recent
completion was carried out in mid-February 2014. The results from
this completion are pending. 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 has participated 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 early
2014.  
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, locat
ed in the Permian Basin in West Texas,
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 spudding 24 gross (9.92 net) Wolfberry Project wells
from March 1, 2014 to December 31, 2014, 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. For a more detailed description of these risks, and others,
see http://lyndenenergy.com/risk-factors. 
ON BEHALF OF THE BOARD OF DIRECTORS 
LYNDEN ENERGY CORP. 
Colin Watt, President and CEO
Contacts:
Lynden Energy Corp.
Colin Watt
President and CEO
(604) 629-2991
(604) 602-9311 (FAX)
www.lyndenenergy.com
 
 
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