Commercial oil shows found in NWR No. 17
Belle Exploration (Belle), the field operator, has advised that the Northwest Rogers No.17 well was successfully drilled to a total depth of 1,683 feet (513 meters). A dual induction sonic log from 1,683 feet (513 meters) to the base of the surface casing of 169 feet and 24 sidewall cores were taken to be analyzed between the interval 1,316 feet through to 1,462 feet. The log and the cores revealed 23 feet of excellent oil sand in the "3rd Cockfield" at 1,439 feet -- 1,462 feet. There is no oil/water contact and the resistivity in this interval reached nine (9) ohms, a clear indication of pure hydrocarbons in a very permeable sandstone.
When a sand package is determined to be "between shale", as in this case, it typically means the well can achieve higher production rates by preventing oil migration into other "up-dip" sands and water encroachment into the producing zone. The core and log analyses indicated excellent permeability and no signs of depletion from the adjacent producing wells, making the decision to run production casing and complete the well an easy one.
"We are very pleased with the results from our analysis of the pay sand. Because there are no signs of depletion from offset production, it provides the opportunity for more low-risk drilling locations than first expected, which should result in increased oil production and earnings for Pryme," said Pryme's US-based President Ryan Messer.
Typical production rates from wells in and near the same field completed in the 3rd Cockfield Sand have been 25-35 barrels of oil per day initially, with a sustainable rate of 18-22 barrels of oil per day over a thirty year period. At a sustained production rate of 20 barrels of oil per day and a US$60 oil price, this additional well should generate approximately US$66,500 per annum in operating income (approximately a 9% increase in total cash flow for Pryme) net to Pryme's interest. Pryme has a 21.85% working interest (16.39% net revenue interest) in the NWR 17 well.
Fourth development well spudded in LaSalle Parish Project
After setting production casing on the NWR No.17, the rig will then drill the NWR No.16 that is expected to be spudded on 20 December, US Central time, by Belle. The well will be drilled to an approximate depth of 1,700 feet (518.16 meters) in an effort to establish oil production in the Cockfield formation. As with the NWR No.17, it is estimated that target depth will be reached within 48 hours of the well being spudded. It is still unknown in this field to what extent the reservoir extends to the south east which, when tested, could open up a brand new play and further oil reserves for Pryme.
The NWR No.16 will be drilled approximately 250 feet northeast of the NWR No.6 and 250 southeast of the No.7. Pryme owns a 21.85% working interest (16.39% net revenue interest) in the North West Rogers No.16.
The directors and management team at Pryme are actively working on other oil projects in the LaSalle Parish area to add shareholder value. Details of this effort should be announced early in 2007.
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