target in excess of 2 million barrels of oil

Announcement today

Drilling begins on first well in Saline Point Project

Pryme Oil and Gas Limited (ASX: PYM / OTC: POGLY) would like to announce that drilling of the first well
(State Lease 19234 No.1) in the Saline Point oil exploration project has begun. The well is currently at
1,100 feet with the target depth of 5,100 feet expected to be reached late in the week.

This project is located in the southern portion of Catahoula Lake in LaSalle Parish, Louisiana. The project
will target in excess of 2 million barrels of oil from the upper sands of the Wilcox formation and is located
near Catahoula Lake and South Catahoula Lake fields that have produced 24 million and 4 million barrels
of oil respectively to date.

Pryme has a 26.96% working interest (20.22% net revenue interest) in this project. Typical drilling and
completion costs rateable to Pryme’s interest for this depth well in LaSalle Parish is US$134,800 per well,
which includes production facilities.