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Lynden Energy Corp.: Wolfberry and Mitchell Ranch Project Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2011) - Lynden Energy Corp. (TSX VENTURE:LVL - News) provides an update on its Wolfberry and Mitchell Ranch projects, both located in the Permian Basin, West Texas.Wolfberry ProjectThe Company continues with a rapid oil and gas development program on its Wolfberry Project where Lynden now has 19 gross (8.1 net) wells tied-in and producing. The Company's share of production, after royalties, from these wells has averaged approximately 423 barrels of oil equivalent over the last 30 days. Production is predominantly oil (approx. 72%).In addition to these wells, the Company has 2 gross (0.9 net) wells that have been drilled and are awaiting tie-in or completion, and an additional 6 gross (2.5 net) wells are expected to spud before December 31, 2011. Current plans call for 31 gross (13.2 net) Wolfberry Project wells to spud in 2012.The majority of the Wolfberry Project wells are located in the West Martin Prospect Area, where Lynden has the option to earn a 43.75% working interest in leases covering 6,014 gross (5,488 net) acres and a 30.625% interest in leases covering 1,127 gross (1,127 net) acres located primarily in Martin County, and in the Wind Farms Prospect Area, where the Lynden has the option to earn a 43.75% working interest in leases covering 3,515 gross (2,503 net) acres located in Glasscock County.The Company's Wolfberry Project also includes the Tubb Prospect Area where Lynden has the option to earn a 35.5% working interest in leases covering 7,341 gross (6,956 net) acres located in Howard County. The first Tubb Prospect Area Wolfberry well is scheduled to spud in late October.The Company anticipates financing the majority of its Wolfberry Project capital expenditures through operating revenues and upward borrowing base revisions on its recently established USD $50 million reducing revolving line of credit with Texas Capital Bank.The Wolfberry play is a major low-permeability oil play in the Midland Basin, with targets generally located between 7,000 and 11,500 feet drilling depth. The primary objectives of the play are oil (and gas) production from the Spraberry and Wolfcamp formations, which are Permian in age and are informally grouped to form the 'Wolfberry' interval or zone. Over time, the play has evolved to include additional zones below the Wolfcamp. Typical Wolfberry wells involve completions, which can include 8 to 12 fracture stimulations, over a 2,500 to 3,000 foot gross interval.Mitchell Ranch ProjectThe Mitchell Ranch Project is comprised of a single lease covering approximately 103,400 gross and net acres, located in Coke, Mitchell, and Sterling counties of West Texas. The Company has a 50% working interest in the 67,400 acres located in the northern portion of the ranch and a 1.25% overriding royalty interest in the 36,000 acres that are subject to term assignment with a large, independent exploration and production company.The Company currently has one (0.5 net) producing well on the project, the Spade 17 #1, where several rounds of completions have been carried out to determine a development plan for the project. The most recent completion was undertaken in late May, and targeted a Lower Wolfcamp zone between 4,900 and 5,000 feet. In the 125 days since oil production from this interval began, the well has averaged 53 barrels of oil per day. This is the third oil productive interval in this well.Based on these positive results, a historical well, approximately one mile to the southeast of the Spade 17 #1, has been identified for re-entry. Historical logs indicate the presence of a Lower Wolfcamp zone with characteristics similar to those in the Spade 17 #1. The re-entry of this well is anticipated to begin at the end of October.In addition, the Company is actively monitoring an ongoing multi-well vertical / horizontal drill program being undertaken by the large, independent exploration and production company on the Mitchell Ranch Project term assignment acreage.ON BEHALF OF THE BOARD OF DIRECTORSLYNDEN ENERGY CORP.Colin Watt, President and CEONI 51-101 requires that we make the following disclosure: we use oil equivalents (boe) to express quantities of natural gas and crude oil in a common unit. A conversion ratio of 6 mcf of natural gas to 1 barrel of oil is used. Boe may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.FORWARD-LOOKING STATEMENTS DISCLAIMER: This news release contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such statements, although considered accurate at the time of preparation, may prove incorrect, and the actual results may vary materially from the statements made herein. Expectations of spudding 6 additional wells in 2011, spudding 31 wells in 2012, and expected timelines relating to oil and gas operations are subject to the customary risks of the oil and gas industry, and are subject to the company having sufficient cash to fund the drilling and completion of these wells. For a more detailed description of these risks, and others, see www.lyndenenergy.com/riskfactors.html. Actual intervals selected for completion and number of fracture stimulation stages will be determined based on information available at the time the completions are initiated.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.