Long/short equity, CFA, oil & gas, value

Lynden Energy - Unknown Permian Basin Pure Play Could Triple


In this article I will describe Lynden's business, discuss the reasons for mispricing, cover their acreage and production in detail, and prove using asset valuation supported by comparable companies why Lynden Energy is worth triple the current enterprise value.

The Business

Lynden Energy is a junior oil producer doing 100% of their business in the prolific Permian Basin. More specifically, they produce oil and have land in the most prolific part of the most valuable oil producing basin in the United States - the Midland Basin.

Lynden has a very strong working interest partner named CrownQuest. CrownQuest is a well-known, successful operator that has drilled hundreds upon hundreds of vertical wells in the Midland Basin with a strong track...

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