week chart for sir knight, page-7

Recent placement stock may slow the uptrend -hit over 60c then profit takers forced the price down - however one hopes that most went to strong hands. PYM appear to have a good business focus so I will continue to hold - not that my selling would effect the price.

Investment Highlights

Pryme Oil & Gas (“Pryme” or “the Company”) have assembled an attractive
basket of near term development opportunities focussed in Louisiana (US)
including the Turner Bayou (3D seismic, on-trend Tuscaloosa and Frio
play), Raven engineering play, (Cotton Valley sandstone), Kestrel (updip to
existing well 3D Hackberry horst block gas play) and Condor Projects
(Tuscaloosa trend play, non-bankable engineering memorandum indicates
20+ BCF remaining);

Louisiana is a prolific producer and represents a strong market for both oil
and gas. Infrastructure is excellent (pipelines, storage, refining capacity);

The Company is currently generating net operating cash flow of A$1.5m per
annum from an net to 50 BOPD (sold to Shell Trading) at the LaSalle Parish
Project. This is anticipated to increase to A$2.0m by 1H 2008 following the
drilling of a further three step-out wells in 2H 2007;

Four development/step out wells at LaSalle Parish were successful in
increasing the number of producing wells from 21-25 over CY 2007;

Pryme’s strategy is to develop its oil and gas inventory from permeable,
saturated “high-margin” reservoirs that have the ability to remain profitable on
low gas prices;

Near-term-investor interest is likely to focus on the Raven and Turner
Bayou Projects where a number of targets from 2D seismic evaluation have
been identified. Processing of the Turner 3-D data is underway. Subject to
the results of this study, a drilling program will commence in mid 2007;

At Raven (PYM: 40%, Nelson Energy Operator), drilling on the Cotton Valley
trend (northern Louisiana), a prolific producer of sweet gas and condensate,
is likely to commence in June 2007.
Outlook

Together with an experienced board, Pryme have also assembled a highcalibre
advisory board including Petroleum Engineer Donald Ellison with over
40 years experience in the oil and gas sector including numerous
discoveries. Market interest is likely to focus on the results of 3D processing
at the Turner Project and drilling in the Raven Project scheduled for July
2007. RMR maintain a speculative buy with a short term price target of
A$1.00/Share.