commercial quantities of oil , page-5

This project is located in the southern portion of Catahoula Lake in LaSalle Parish, Louisiana.

The project is targeting 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 which are prolific oil producing regions.

Pryme has a 26.96% working interest (20.22% net revenue interest) in this project. Drilling of the first group of Frio objective wells in the Turner Bayou 3D seismic project and second Raven project well is expected to begin later this month as planned and outlined in the drilling timetable enclosed in this announcement.