Lynden Energy Corp. (TSX VENTURE:LVL) reports that the Company's wholly owned subsidiary, Lynden USA Inc., has entered into a definitive agreement with BreitBurn Energy Partners L.P. of Los Angeles, California, for the sale of the subsidiary's interest in 12 gross (4.7 net) Wolfberry Project wells and underlying leases covering approximately 1,000 gross acres (403 acres net to Lynden USA) for proceeds of US$19.3 million.
The sale is expected to close on, and have an effective date of, December 30, 2013. The purchase price will be subject to customary closing adjustments for a transaction of this type.
The Company's working interest in the wells to be sold ranges from approximately 22% to 44%. The Company's working interest partner in the assets has also recently entered into an agreement to sell its interest.
The sale is in line with the Company's stated objective to sell portions of its proven acreage in order to manage its working capital position and to redeploy funds to its less developed and unproven acreage, where the Company believes it can achieve the best returns for shareholders.
Prior to this sale, the Wolfberry Project currently covers approximately 17,978 gross (15,825 net) acres, equivalent to approximately 6,466 acres net to Lynden's working interest, on which the Company has 79 gross (33.0 net) wells tied-in and producing.
The Company's current plans call for 28 gross (11.6 net) Wolfberry Project wells to spud in calendar 2014. The Company does not anticipate any change in the number of wells to be spud in calendar 2014 as a result of this sale.