Welcome!

News Feed Item

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 and 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, located 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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.