Southern Prospect Area
The recently spudded well is a twin of an historical well that had been re-entered by the operator in early 2007. After completing multiple zones and encountering significant gas in the re-entry well, a mechanical problem occurred in the well preventing production. The new well site is within 100 meters of the Southern Prospect Area pipeline.
Also in the Southern Prospect Area, the operator is currently completing multiple zones in a recently re-entered well originally drilled in the early 1980's. It is anticipated that production from the well will be tied into the existing Southern Prospect Area pipeline by the end of October.
Lynden has a 25% before payout working interest (23.75% after payout working interest) in an 85% to 87% net revenue interest in the Southern Prospect Area.
Northern Prospect Area
In the Northern Prospect Area, subject to receiving government and landowner approvals, the operator's revised timeline is to begin the construction of a 15-mile gas pipeline by the end of the month. The route of the pipeline has been designed to optimize the tie-in of two previously re-entered historical wells and new wells. Five of the wells in the six well program are to be drilled in the Northern Prospect Area.
Lynden has a 55% before payout working interest (41.25% after payout working interest) in an 80% net revenue interest in the Northern Prospect Area.
About the Paradox Basin Project
The Paradox Basin Project includes two contiguous oil and gas prospect areas covering in excess of 1,525,000 acres established by Lynden, its working interest partners, and the project operator, a middle tier Texas-based oil and gas company with substantial experience in the area.
The Paradox Basin Project lease holdings cover in excess of 126,000 acres; 110,000 acres in the Northern Prospect Area and 16,000 acres in the Southern Prospect Area. The operator is targeting gas production from shales and other Paradox Basin lithologies. The operator's exploitation program is based on commingling production from multiple zones, which has been successfully done by other operators in the Paradox Basin.
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