| Paradox Basin, Utah
The Company’s Paradox
Basin Project includes two contiguous oil and gas
prospect areas totalling 1,525,000 acres. Lease
holdings in the prospect areas cover in excess of
126,000 acres.
The operator, a
middle tier Texas-based oil and gas company, 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.
Northern Prospect
Area
The 900,000 acre Northern Prospect Area includes leases
covering in excess of 110,000 acres. 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.
Southern Prospect
Area
The 625,000 acre Southern Prospect Area includes leases
covering in excess of 16,000 acres. Lynden has a 25%
before payout working interest (23.75% after payout
working interest) in an 85% to 87% net revenue
interest. The Southern Prospect Area includes two
re-entered wells that are producing into a recently
built gathering system.
About the Paradox Basin
The Paradox Basin,
located primarily in southeastern Utah and southwestern
Colorado, is the site of significant historical and
on-going oil and gas production. Well known plays
include the Greater Aneth field, which has produced in
excess of 439 million barrels of oil and 384 billion
cubic feet of gas and the Lisbon field, which has
produced in excess of 51 million barrels of oil and 781
billion cubic feet of gas. Smaller fields, such as
Desert Creek, Bug and Ismay have cumulative productions
on the order of 1 to 10 million barrels of oil and 1
billion cubic feet of gas.
Much of the
historical production in the Paradox Basin has been from
Pennsylvanian sandstones and algal mounds, and to a
lesser extent from Pennsylvanian carbonaceous shales.
Lynden and the project operator believe that within the
prospect area there are significant opportunities for
bypassed production. | 
