My top junior oil stock in the Permian Basin oil play

Lynden Energy has 6500 net acres in the Wolfberry trend in the main Permian Basin in Texas, and is producing just over 500 bopd from that land base. Part 2: The Permian Basin – Cline Shale Resource Play In Part 1, I explained how the Permian Basin in Texas was exploding with industry and investor interest - because of all the new tight oil plays being discovered and developed. And that has me excited about the prospects for one Canadian junior - though all this excitement is happening a year later than I thought it would. But at the end of the day, and the end of the play, all this should all be good news for one of my OGIB portfolio stocks, Lynden Energy Corp. (TSX: V.LVL, Stock Forum). Lynden has 6500 net acres in the Wolfberry trend in the main Permian Basin, and is producing just over 500 bopd from that land base. When I bought it a year ago, I thought the value of other Wolfberry transactions made the stock worth $0.90/share alone. I still believe that - but it was really their Mitchell Ranch property on the eastern shelf of the Permian that I saw as the catalyst to make the stock a double or a triple. And it's two formations that could give the stock a chance – the Cline Shale and the deeper Mississippian. Devon Energy's map of where the Cline shale is pervasive has Lynden's Mitchell Ranch very close to the middle of play. That is clearly getting some market attention in the last week. Continue reading this article

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