RE:RE:RE:ResultsIMO Lynden is a steal at this price, and I have no problem with it continuing to trade down here so that I can pick up more. It's amazing how underfollowed this stock is. I believe the price action has to do with the exercising of warrants. Please correct me if I am wrong on this, but when someone exercises a warrant, the company issues a share and then it is sold onto the market. As per the press release yesterday, there have been over 15 million warrants exercised in roughly 40 trading days since 9/30/13. That averages out to roughly 375K shares sold (warrants exercised) per trading day. That's more than the average daily trading volume.
Cormark Securities just initiated coverage on Lynden and they have a $2.00 price target. This is sell side research.
IMO Lynden's price performance has nothing to do with Chesapeake's drilling on the farmout, past or future. CHK was targeting the Mississippian formation and they drilled some absolute dogs, but that isn't relevant to the more recent Cline drilling in the area. Lynden is cheap based off the Wolfberry project, regardless of the Mitchell Ranch.
Athlon Energy just announced plans to drill several Wolfcamp B wells in Howard County starting in January 2014, and they have a horizontal permit that directly offsets Lynden's 7K gross acre Tubb prospect. This is important because Tubb is really their only large contiguous block of land that's conducive to long lateral Wolfcamp/Cline wells. Furthermore, Athlon has already derisked Tubb by drilling some outstanding vertical Wolfberry wells offsetting and to the north of Tubb. Some of those wells have IPs more similar to horizontal Wolfcamp and Cline wells in Glassc_ck County rather than cheap $2mm vertical wells. Check out their latest presentation. Hold tight.