Pryme: Raven Well to Reach TD Next Week

Pryme Oil and Gas Limited said that its first Raven Project well, the Spinks-Middlebrooks #11-1, is currently drilling at 8,035 feet and is ahead of schedule.

Third Cotton Valley Sand interval to be evaluated

The initial target depth of the Spinks-Middlebrooks #11-1 was approximately 10,000 feet and was originally designed to test two primary Cotton Valley formations, the "C" and "Price" sands, at these depths. Since drilling began on 8 June 2007 we have information pertaining to a newly drilled well located approximately three miles southeast of our Spinks-Middlebrooks #11-1 test. Our location is 400 feet up-dip from this well and we plan to drill an additional 900 feet (10,900 feet total depth) to test the added Cotton Valley Sand.

This additional target has the potential to increase any prospective reserves by a range of 0.5 - 2.0Bcf if successful. The cost to drill the additional 900 feet is negligible, taking only an additional two days to drill. This takes the total prospective reserves magnitude for this test into a range of 5.5 - 7.0Bcf based on trend analogue well production data and known permeabilities in the immediate area.

Target depth to be reached next week

We expect to reach the 10,900 feet target depth next Tuesday night, 26 June 2007 US Central Time, when we will test all three Cotton Valley Formations for hydrocarbons. Pryme is developing a strong lease acreage position to accommodate the expansion and subsequent development drilling opportunities on the back of a successful test.

Project Description

The Raven project covers mineral leases in the prolific Cotton Valley and Hosston natural gas trends in Lincoln Parish, Louisiana. Raven exists along a natural gas fairway of Cotton Valley marine bars which are the target of the Raven project. The project has been classed as an "engineering play" to the extent that more emphasis is given to the drilling and completion techniques and production of the well, as generally most wells in the area will produce natural gas and condensate. Approximately ten drilling locations have been identified in the project with the leasing of acreage continuing. Prospective gas reserves to the 100% working interest within the Raven Prospect could be on the order of 50Bcf (20Bcf net to Pryme) according to Wave, based on 5Bcf per well. Pryme has a 40% working interest (30% Net Revenue Interest) ownership in the project.