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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/13 -- Lynden Energy Corp. (TSX VENTURE: LVL) (the "Company") reports its second quarter 2013 results. Highlights for the six months ended December 31, 2012 (the "Current Period"), compared to the six months ended December 31, 2011 (the "Prior Period"), include:
-- Total production increased 222% to 188,110 boe (1,022 boe/d).-- Gross revenues, net of royalties, increased 184% to $9,279,144.-- Sale of 16 gross (7 net) Wolfberry Project wells, to BreitBurn Energy Partners L.P. for $25 million, effective December 1, 2012 (the "BreitBurn Sale").
Production for the six months ended December 31, 2012 totaled 188,110 boe (1,022 boe/d). Production for the three months ended December 31, 2012 totaled 97,880 boe (1,064 boe/d), an increase of 9% over production in the three months ended September 30, 2012.
All of the production is attributable to the Wolfberry Project. The production mix, on a percent per boe basis, from the Wolfberry Project remains approximately 65% oil and 35% natural gas and associated products.
Financial Results for the 6 months and 3 months ended December 31, 2012
This news release should be read in conjunction with the Company's consolidated financial statements for the six months ended December 31, 2012 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 $3,320,507 for the Current Period compared to operating earnings of $1,426,539 for the Prior Period. The Company's net earnings of $10,485,597 and total comprehensive income of $10,648,864 for the Current Period compared to net earnings of $1,418,905 and total comprehensive income of $1,289,853 for the Prior Period. Significant components of the Current Period net earnings were net revenue of $9,270,914, depletion and depreciation of $3,485,932, gain on disposition of property, plant and equipment of $11,166,300, and income tax expense of $4,000,799.
Petroleum and Natural Gas ("P&NG") Revenue
The Company reported gross P&NG revenues of $9,279,144 (Prior Period - $5,043,844) for the Current Period, all from its Wolfberry Project wells. In conjunction with the revenues, the Company reported royalties paid of $2,964,775 (Prior Period - $1,486,182) and paid production and operating expenses of $1,505,529 (Prior Period - $635,193) for the Current Period. The Company also incurred $3,485,932 (Prior Period - $1,718,927) of depletion and depreciation for the Current Period. Average realized prices for the Current Period, were $86 per barrel ("Bbl") of oil and $4.89 per thousand cubic feet ("Mcf") of natural gas, compared to $89 per Bbl of oil and $8.46 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 $6,202,197 for the three months ended December 31, 2012 compared to $6,041,722 for the three months ended September 30, 2012 ("Q1/2013"). In conjunction with the revenues, the Company reported royalties paid of $1,571,024 (Q1/2013 - $1,393,751) and paid production and operating expenses of $834,113 (Q1/2013 - $671,416) for the three months ended December 31, 2012. Average realized prices for the three months ended December 31, 2012 were $83 per Bbl of oil and $5.00 per Mcf of natural gas, compared to $88 per Bbl of oil and $4.76 per Mcf of natural gas, for Q1/2013.
