Project Profile
Location: Paradox Basin, southeast Utah and southwest Colorado
Area: 1,525,000 acres
Start-up year: 2004
The Paradox Basin, located primarily in southeast Utah and southwest Colorado, is a significant petroleum and natural gas producing basin in the continental United States. New exploration models, based primarily on the commingling of multiple, previously bypassed, gas zones were applied to the basin on a larger scale beginning in 2004. More recently, exploitation of gas bearing zones through horizontal wells has begun. Recognising the potential in the south central area of the Paradox Basin, Lynden and its Texas-based partner and operator began significant leasing in late 2005. The leasing has been carried out in two large prospect areas, or areas of mutual interest, and allow knowledge obtained during the course of operations to be jointly leveraged across the prospect areas in the future.
The Paradox Basin Project now includes two contiguous oil and gas prospect areas totaling 1,525,000 acres. The 900,000 acre Northern Prospect Area includes leases covering approximately 100,000 acres, where Lynden has a 55% before payout working interest (41.25% after payout working interest) in an 80% net revenue interest. The contiguous 625,000 acre Southern Prospect Area includes leases covering approximately 10,000 acres, where Lynden has a 25% before payout working interest (23.75% after payout working interest) in an 85% to 87% net revenue interest.
Earthstone Energy, Inc. and Lynden Energy Corp. signed a definitive agreement whereby Earthstone acquired Lynden in an all-stock transaction. (December, 2015)
Operators:
Earthstone Energy: Operator
Lynden Energy