o & g weekly observations on pym & jpr

John Campbell, in this week’s Oil & Gas Weekly (www.oilers.com.au), gave the following excellent account of both PYM and JPR's current drilling programs:

“Two Companies. Two Continents. Two Similar Wells with Company Making Potential.
Jupiter Energy and Pryme Oil & Gas have one thing in common. Both are re-entering previously drilled wells in an attempt to produce hydrocarbons not originally flow tested for whatever reason.
Jupiter’s well is an old Soviet well drilled in Kazakhstan. Shell Oil previously drilled Pryme’s well at Atocha in Louisiana.
With Pryme’s Justin Pettett and Ryan Messer we visited the location of the HM Brian #1 in Atocha earlier this past week and watched the workover rig drilling out the first of three cement plugs.
The well was drilled in 1980 to a depth of 17,700 feet. Pryme believes it contains over 125 feet of bypassed Tuscaloosa pay sand below 17,000 feet.
Shell Oil did not test the interval when they drilled the well. Why is not clear.
Of the three cement plugs, the top plug is from 15 to 80 feet, the second at 12,447 to 12,900 feet and the third and final plug at 16,482 to 16,950 feet.
When we visited the site the contractor was drilling out the top plug at a good rate of 16 feet an hour.
When the well is cleaned up Pryme will perforate and frac the target interval and flow test the well. They hope to do this in the first week of November.
Pryme has a 25% interest in the Atocha project, which it estimates could
contain 1.2 trillion cubic feet of gas equivalent over the entire acreage block.
Future Corp has farmed in for 50% and soon to be listed Promesa Limited led by former PYM Director Ananda Kathiravelu has farmed in for 25%.
Pryme is free carried for 12.5% of the $1.2 million budget and has a 3% overriding royalty on any production. And even with its quarter interest will clearly benefit if a positive result follows all the extensive pre drill work done on Atocha.
Jupiter retains a 100% interest in the NWZ #2 well which it believes contains a 30 metre oil sand that was never produced. JPR will also drill out cement plugs at 2,412 metres 2,500 metres and a third at 3,046 metres. JPR will then clean up the well bore, perforate and flow test the target interval.
Both Pryme and Jupiter will issue regular reports on progress of the re-entries. Jupiter every Monday. Pryme at likely weekly intervals. So we should get updates next week.
Jupiter is hoping for its well to IP at 200 to 300 barrels of oil a day. Pryme expects good gas and condensate flows in the millions of cubic feet equivalent per day from its well. We will know more in coming weeks.
Be aware these are far from risk free projects. Both JPR and PYM are getting to test known hydrocarbons formations without the expense of drilling a new well, some US$8 to $9 million in value at Atocha and not much less for Jupiter in Kazakhstan.”
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“Jupiter Energy will update the market Monday on progress with its re-entry of the NWZ #2 well in Kazakhstan (see story above). As a holder of Jupiter paper we are obviously hoping for good news.
JPR will follow that with its quarterlies later in the week.
Pryme Oil & Gas (see same story above) will also update the market on progress with its re-entry at Atocha in Louisiana. By now the contractor will have drilled out at least the top two plugs if not all three.”