low risk huge potential strong cashflow

From the September 2006 Pryme Times: Their own newsletter

Interview with Ryan Messer (COO)

Q What are your projections for cash flow and production from LaSalle Parish over the next six months?

A Answer: We’re currently banking A$1.5M in net operating income from this project annually and with further development drilling planned over the next 6 months we expect to increase this to more than A$2.0M.


Q What prospective reserves do you expect to find at the Turner Bayou and Wave exploration projects?

A 150 Billion Cubic Feet (BCF) of gas for Turner, to the 100% working interest. Even risk adjusted at a 35% success rate Pryme’s expected net reserve value could be as high as 27.3BCF based on its 52% working interest. 110BCF for the current Wave Exploration Projects to the 100% working interest and based on a 10% carried working interest and 10% working interest Pryme’s net reserve value could be as high as 22BCF.


Q What impact could they have on the company’s stock price?

A If Turner is 35% successful we’re looking at around $1.06 of value impact on the share price, based on US$2.50 per MCF in the ground, and an AUD/USD exchange rate of 0.75. With Wave we’re looking at about $0.87 of fully diluted value based on US$2.50 per MCF in the ground, an AUD/USD exchange rate of 0.75 and assuming a 10% carried interest plus a 10% working interest. That’s a total $1.93 on our current share price based on the above assumptions.


Q How are you going to make money from the Wave Exploration venture?

A As a funding partner we will make money from the sale of the projects to third parties and securing a cash profit (and our initial capital), plus in most cases a carried working interest and overriding royalty interest.


Q How important to the company is the ADR program in
the U.S.?

A We look at the ADR program as another string to our bow and an important fundamental moving forward in creating liquidity for shareholders and further exposure in one of the largest oil and gas markets.

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Background: Ryan forms an integral part of Pryme’s U.S. operations and is the chief operating officer. In the past five years, he has been directly involved in the drilling of well over one hundred wells throughout the Gulf states and Oklahoma.
One of two Pryme board members based in the U.S., Ryan has more than ten years of international corporate experience, of which the past five years has been spent in energy project finance and project management. He also focused on field operations and project risk assessment for prior energy companies.
A business marketing and finance graduate from the University of Central Florida, Ryan brings expertise in the areas of project management, I.T. research and design, partner relationship development, asset allocation and risk assessment, and executive management.