First Well in Capitola Oil Project Reaches Total Depth...

First Well in Capitola Oil Project Reaches Total Depth Completion Underway

HIGHLIGHTS

34 net feet of oil and gas saturated sandstone within primary target
Hydrocarbon shows encountered in Cline Shale and other intervals
Rig currently mobilizing to second Capitola well

Pryme Energy Limited (Pryme) is pleased to announce that the first well to be drilled in the Capitola Oil Project, the Mahaffey Bishop PU 1 in the Sweetwater acreage block, has reached its total depth of 6,090 feet (1,856 metres.) Mud log data collected while drilling, and electric logs run post drilling, indicate that our primary objective, the A Sand within the Canyon Sand formation, contains 34 feet net (10 metres) of oil and gas saturated sandstone. The well also encountered a number of hydrocarbon shows in the Cline Shale as well as in other intervals within the wellbore. Production casing has been set and cemented in the wellbore in preparation for completion.

The drill rig is now demobilizing and will move to the second Capitola Oil Project well, the Hope Boles
PU1 in the southern region of the Sweetwater acreage block, where drilling is expected to commence
early this week. Drilling of the third Capitola Oil Project well, the McCain 189-F1 in the Canyonville acreage block, is also scheduled to commence this week.

“Well completion will begin in November following drilling and casing of the three wells in the initial
program,” said Ryan Messer, Pryme’s COO and Executive Director. “In the meantime we will
incorporate the well data into the design of the completion and fracking program. We are encouraged by the data acquired and are optimistic about the well’s contribution to the project. Completion will be
followed by flow testing to determine the well’s production capability.”