ASX Announcement / Media release 7 July 2006Pryme Starts Up...

ASX Announcement / Media release 7 July 2006
Pryme Starts Up First Exploration Project With Wave
Pryme Oil and Gas Limited, a fast-growing Australian oil and natural gas producer and explorer operating in the U.S., is pleased to announce that it leased the acreage for its first Joint Venture project with Wave Exploration Group. The exploration ground covers, the Kestrel Prospect, located in Calcasieu Parish, Louisiana.
Pryme and Wave have a combined working interest of 100% in the prospect with Pryme’s working interest as high as 80%, depending upon the ultimate negotiated trade for the capitalization of the Prospect. Pryme, under the Joint Venture Agreement with Wave, will earn 45% of all promotes including overrides, carried working interests and cash fees. Kestrel has a two well potential and is located on 300 consolidated acres that would be drilled to 13,500 feet, targeting four “Hackberry” natural gas and condensate (oil) sands.. Two wells should effectively drain this objective if permeabilities are encountered that are analogous to consolidated sandstones found in the Hackberry in this general area. Prospective reserves could be in the order of 28.5 billion cubic feet (BCF), according to Wave.
The location has also been confirmed by 3-D seismic data. Approximately 6,500,000 barrels of oil and 101 billion cubic feet of gas have been produced in the vicinity of the Kestrel prospect. Kestrel will be drilled on a 200-acre horst block 300 feet up dip and upthrown to a well that produced 1.2 BCF from a Hackberry Sand.
“This is the first of several large reserve-base prospects being reviewed under the Pryme/Wave Joint Venture,” said Pryme Chairman John Dickinson. “The company’s participation in these deeper gas objectives, that are on trend with proven production and consistent with 3-D seismic interpretation, is hoped to yield exponential Proved and Probable reserves for our balance sheet.”
Pryme Oil and Gas Limited (PYM) is a fast-growing Australian oil and natural gas producer and explorer with interests in the U.S., the world’s biggest oil market. The company has an exceptional suite of exploration projects focused on Louisiana, the fifth-largest oil-producing state in the U.S. These projects are funded in part by existing cash flow. Pryme’s management team has a total of almost 50 years of energy industry experience and has uniquely focused local knowledge, underscored by the proven track records of its managers and directors. Directors of the company are John Dickinson (Non Executive Chairman), Justin Pettett (Managing Director), Ryan Messer (Executive Director) and Ananda Kathiravelu (Non Executive Director).
For further information please contact:
Justin Pettett
Managing Director
Pryme Oil and Gas Limited
Telephone: +61 07 3371 1103
Email: [email protected]
Dudley White
Savage & Horrigan
Telephone: +61 02 8281 3235
Email: [email protected]