pryme sells condor to bp , page-10

Also just spoke to Justin , still in Texas wrapping up more deals after the NAPE expo!!

He confirmed the price could not be disclosed as BP are still very actively pursuing leases and deals. However the deal "was very healthy for Pryme, covered costs and included a handsome profit on the deal". his words.

i can tell you that deals of this nature with large counterparties typically run in the order of US$ 700- to 1000 per acre so it shouldn't be too hard to work out the approximate cash figure, based off 1069 acres of lease.

in addition overriding royalties are generally in the vicinity of 1- 2 % for ongoing production, again depending on size of lease etc...

assuming BP get decent 3 wells in resevoirs producing at 50 mmcf per day that would equate to at least US$ 4 million per annum to PYM on the 1 % royalty..... thats being conservative as deeper wells in the Tuscaloosa trend have flowed historically at 80 mmcf per day.

it might not show up in next quarters revenue but it will be worth alot the day it does start to flow sometime down the track....i dont think BP will be fooling around here. so as i've said over and over again this is a long term play with excellent upside potential...very little is currently factored into shareprice at current levels.

cheers