LVL

Lynden Energy Corp. (TSX VENTURE:LVL) (the "Company") reports its second quarter
2014 results. Highlights for the six months ended December 31, 2013 (the
"Current Period"), compared to the six months ended December 31, 2012 (the
"Prior Period"), include: 




--  Total production increased 157% to 294,365 boe (1,598 boe/d) 
--  Gross revenues, net of royalties, increased 173% to $16,016,198 
--  Sale of 12 gross (4.7 net) Wolfberry Project wells, to BreitBurn Energy
    Partners L.P. for $19.3 million, effective December 30, 2013. (the
    "BreitBurn Sale") 



Production for the six months ended December 31, 2013 totaled 294,365 boe (1,598
boe/d). Production for the three months ended December 31, 2013 totaled 141,277
boe (1,536 boe/d), a decrease of 8% over production in the three months ended
September 30, 2013. Production volumes in November and December 2013 were
negatively impacted as a result of suspensions of production due to severe
winter weather conditions.


All of the production is attributable to the Wolfberry Project. The production
mix, on a percent per boe basis, from the Wolfberry Project is approximately 60%
oil and 40% natural gas and associated products. 


Financial Results for the 6 months and 3 months ended December 31, 2013

This news release should be read in conjunction with the Company's consolidated
financial statements for the six months ended December 31, 2013 and the notes
thereto, together with the MD&A for the corresponding period, which are
available under the Company's profile on SEDAR at www.sedar.com. All monetary
references in this news release are to U.S. dollars unless otherwise stated. 


Results of Operations 

The Company reported operating earnings of $18,385,808 for the Current Period
compared to operating earnings of $14,486,807 for the Prior Period. The
Company's net earnings of $12,595,155 and total comprehensive income of
$12,295,936 for the Current Period compared to net earnings of $10,485,597 and
total comprehensive income of $10,648,864 for the Prior Period. Significant
components of the Current Period net earnings were net revenue of $15,942,860,
depletion and depreciation of $4,716,132 gain on disposition of property, plant
and equipment of $9,937,842 and income tax expense of $5,780,000.


Petroleum and Natural Gas ("P&NG") Revenue

The Company reported gross P&NG revenues of $20,888,456 (Prior Period -
$12,243,919) for the Current Period, all from its Wolfberry Project wells. In
conjunction with the revenues, the Company reported royalties paid of $4,872,258
(Prior Period - $2,964,775) and paid production and operating expenses of
$2,148,810 (Prior Period - $1,505,529) for the Current Period. The Company also
incurred $4,716,132 (Prior Period - $3,485,932) of depletion and depreciation
for the Current Period. Average realized prices for the Current Period, were $98
per barrel ("Bbl") of oil and $4.65 per thousand cubic feet ("Mcf") of natural
gas, compared to $86 per Bbl of oil and $4.89 per Mcf of natural gas, for the
Prior Period. The natural gas selling price is reflective of the thermal value
of gas and associated products sold.


The Company also reported gross P&NG revenues of $9,305,437 for the three months
ended December 31, 2013 compared to $6,202,197 for the three months ended
September 30, 2013 ("Q1/2014"). In conjunction with the revenues, the Company
reported royalties paid of $2,174,904 (Q1/2013 - $1,571,024) and paid production
and operating expenses of $1,154,131 (Q1/2013 - $834,113) for the three months
ended December 31, 2013. Average realized prices for the three months ended
December 31, 2013 were $94 per Bbl of oil and $4.85 per Mcf of natural gas,
compared to $101 per Bbl of oil and $4.42 per Mcf of natural gas, for Q1/2014.


Liquidity 

The Company has a $100 million (increased from $50 million subsequent to
December 31, 2013) reducing revolving line of credit. Effective December 31,
2013, the line of credit had a $25 million borrowing base of which $12.25
million was outstanding. The amount drawn on the line of credit has decreased
from $29 million at September 30, 2013 primarily as a result of applying a
portion of the proceeds of the December 30, 2013 BreitBurn Sale against the
outstanding amount.


The Company anticipates financing the majority of its Wolfberry Project capital
expenditures through operating revenues, draw downs on the line of credit, and
cash on hand at December 31, 2013 of approximately $14.5 million. 


Operations Highlights 

The Wolfberry Project 

The Company is currently carrying out a rapid oil and gas development program on
its Wolfberry Project, where the Company now has 75 gross (31.0 net) wells
tied-in and producing. As a result of the BreitBurn Sale, during the three
months ended December 31, 2013 there was a net decrease of 4 gross (2.0 net)
wells tied into production. At December 31, 2013, the Company had 3 gross (1.27
net) wells spud or drilled awaiting completion and/or tie-in. 


The Company's current plans call for 24 gross (9.92 net) Wolfberry Project wells
to spud in the balance of calendar 2014 (March 1 to December 31, 2014) at an
estimated cost to the Company of $23.8 million. The Company's funding amount for
the 9.92 net wells is equivalent to 11.34 wells. The gross cost of a Wolfberry
well is currently approximately $2.1 million.


The Company's capital budget is subject to change depending upon a number of
factors, including economic and industry conditions at the time of drilling,
prevailing and anticipated prices for oil and gas, the availability of
sufficient capital resources for drilling prospects, the Company's financial
results and the availability of lease extensions and renewals on reasonable
terms.


Mitchell Ranch Project 

The Company's Mitchell Ranch project covers approximately 102,000 acres of P&NG
leases located primarily in Mitchell County, West Texas where the Company has a
50% working interest in approximately 67,000 acres, and a 1.25% overriding
royalty interest on approximately 35,000 acres subject to a term assignment with
a large, independent exploration and production company. 


The Company currently has one (0.5 net) producing well, the Spade 17#1, where
several rounds of completions have been carried out. During the Current Period,
the Company received $46,829 of net revenue from sales from the Spade 17#1 well.
The most recent completion was carried out in mid-February 2014. The results
from this completion are pending. The Mitchell Ranch Project is in the
exploration and evaluation stage and as such, the net revenues have been
credited to capitalized costs.


As a result of significant new drilling activity in the general area around the
Mitchell Ranch Project, the timing of the new wells has been pushed out in order
to best incorporate the results of other operators into the development plan on
the Mitchell Ranch Project. The Company has participated in a seismic shoot over
a portion of the ranch as a preparatory step for a new well program. Initial
processing and interpretation of the new seismic data and of the existing
seismic data covering much of the ranch is expected in early 2014. 


About Lynden 

Lynden Energy Corp. is in the business of acquiring, exploring and developing
petroleum and natural gas rights and properties. The Company has various working
interests in the Wolfberry Project and Mitchell Ranch Project, located in the
Permian Basin in West Texas, USA.


NI 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 24 gross (9.92 net)
Wolfberry Project wells from March 1, 2014 to December 31, 2014, 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
http://lyndenenergy.com/risk-factors.


ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN ENERGY CORP.

Colin Watt, President and CEO

FOR FURTHER INFORMATION PLEASE CONTACT: 
Lynden Energy Corp.
Colin Watt
President and CEO
(604) 629-2991
(604) 602-9311 (FAX)
www.lyndenenergy.com

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