Lynden Completes Wolfberry Well Series
Lynden Energy reported that the Miller Trust #101 and the Mallard 23 #2, the Company's second and third Wolfberry wells, have been tied-into production. The Miller Trust #101 and the Mallard 23 #2 were successfully fracture stimulated in mid-February in 8 and 10 stages, respectively.
The Mallard 23 #2 has most recently produced at a rate of 83 barrels of oil and 344,000 cubic feet of gas per day, and has produced an average of 67 barrels of oil and 172,000 cubic feet of gas per day over the first 17 days of production. The Mallard 23 #2 has the potential to significantly impact the Company as the first well drilled on four contiguous sections leased in the Wind Farms AMI area. In addition to the positive implications of a growing revenue base, successful wells, such as the Mallard 23 #2, have the potential to add significantly to the Company's inventory of drilling locations.
The Miller Trust #101 has most recently produced at a rate of 75 barrels of oil and 70,000 cubic feet of gas per day, and has produced an average of 60 barrels of oil and 56,000 cubic feet of gas per day over the first 12 days of production. Management is encouraged by the initial results from the Miller Trust #101, in particular given that due to conditions in the hole, it was not possible to drill to the original target depth of approximately 11,400 feet to test two of the well's deeper targets.
In addition, the Company's first Wolfberry well, the Harrell 34 #1, has now produced in excess of 6,500 barrels of oil and 14 million cubic feet of gas since being tied-in in mid-January.
All three wells continue to return completion fluid, and the ultimate productive capability of the wells remains unknown at this time.
The Roy 1, the Company's fourth Wolfberry well, was drilled to a total depth of 10,922 and was fracture stimulated in 11 separate stages late last week. The Roy 1 is scheduled to be tied-into production facilities shortly.
Management is of the view that the results received to date strongly support the acceleration of investment in its Wolfberry Project. The Company's fifth Wolfberry well is scheduled to be spudded in early May. Additional wells on the Company's Wolfberry Project are currently being designed, however locations and timing have not yet been finalized. The project operator is actively leasing and evaluating leasing opportunities in the five AMI areas that make up the Wolfberry Project.
Lynden has earned a 43.75% interest in the Harrell 34 #1, Miller Trust #101, Mallard 23 #2, and Roy 1 by funding 50% of the cost of the wells.