Drilling to commence next week

I have been in touch with the company - they expect the rig to be on-site for drilling to commence next week.

A few highlights re the upcoming drilling program:

"Pryme is targeting, firstly, two oil fields at Capitola (Sweetwater and Claytonville) in the highly prospective Eastern Permian Basin, Texas, that have previously produced c.6 MMBbl of oil. Secondly, significant value-enhancement from the Cline Shale Oil horizon in the fields where adjoining US companies, such as Devon Energy, are spending significant amounts up to Capitola’s boundaries to ‘unlock’ the Cline shale’s potential (which has been compared to the Eagle Ford shale in prospectivity)."

Pryme will undertake a two well vertical drilling program commencing in mid-September 2014, with completion and flow rate results expected in late October 2014. Success in the initial program may lead to production coming online in early November 2014.

These initial wells will be located in the southern part of the Sweetwater acreage block and are planned to vertically intersect the main Capitola "stacked" horizons through to the Cline Shale approximately 6,000 feet deep with the primary target horizons being:

Breckenridge Lime: This is a shallower conventional target (4,500 feet) which is a carbonate encased in shale setting just above the Canyon Sands, and will be tested to determine commercial hydrocarbons providing potentially as much upside to Pryme’s vertical well program as the Cline Shale;

Canyon Sands: This is a conventional target that previously produced oil predominantly from the C Sand and has multiple sands ranging from 4,900 feet deep to 5,500 feet deep; and

Cline Shale: The initial vertical wells are planned to be drilled through to the Cline Shale for testing purposes. Overall, Pryme does not currently have plans to undertake expensive horizontal drilling in the Cline Shale, but instead, if productive, to produce through a vertical well bore and to ‘learn’ from both (i) any testing of the Cline Shale during Pryme’s vertical drilling program and (ii) the extensive horizontal Cline Shale activity of nearby neighbours (see further details below).