pryme enters second joint venture project with wav

Sydney - Wednesday - July 26: (RWE Australian Business News) -
Pryme Oil and Gas Ltd (ASX code: PYM) today announced its second joint
venture project with Wave Exploration Group.
The Raven prospect, upon which the JV is based, covers
exploration ground in the prolific Cotton Valley and Hosston natural gas
trends in Lincoln Parish, Louisiana.
Pryme and Wave have a combined working interest of 100 per cent
in the prospect with Pryme's participating working interest expected to
be as high as 65 per cent, depending upon the ultimate negotiated trade
for the capitalisation of the prospect.
Also Pryme, under its joint venture agreement with Wave, will
earn 45 per cent of all promotes including overrides, carried working
interests and cash fees, which further bolsters the company's revenue
stream and gas reserves.

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Prospective gas reserves within the Raven prospect could be in
the order of 43.2 billion cubic feet (BCF), according to Wave.
Leasing of the prospect acreage has begun and is expected to be
finalised in the coming months, with the drilling of the first well
scheduled to begin in the second quarter of 2007.
The Raven prospect exists along a very prolific gas fairway of
Cotton Valley marine bars in the Lincoln Parish.
The prospect is targeting 10,000-foot Cotton Valley sands and is
located on 4000 consolidated acres.
Pryme anticipates that six to 10 wells should be sufficient to
effectively drain this objective if permeabilities are encountered that
are analogous to consolidated sandstones found in the Cotton Valley
area.