SOURCE: Pryme Oil and Gas Limited

December 17, 2007 11:40 ET

Pryme's Raven Well Hits Primary Gas Targets

HOUSTON, TX--(Marketwire - December 17, 2007) - Pryme Oil and Gas Limited (ASX: PYM) (PINKSHEETS: POGLY) -- The second well (Grable 15#1) in the Raven exploration project has reached planned total depth of 11,000 feet and as a result of the log analysis, the decision has been made to set production casing. As forecasted, the two primary objective zones, the "C" sand and the "Price" sand, were encountered correlating with strong gas shows from the mud log during the drilling phase.

"This test further reinforces the execution of our 'Long Play' strategy that the Board of Directors has put in place for the growth of Pryme along with confirming our robust collection of exploration projects that we are working to convert into real value for our shareholders. We are very happy with the logging. Getting Raven and Turner Bayou underway leading up to the Christmas break should see Pryme add natural gas and condensate to its existing oil revenues," said Justin Pettett, Pryme's Managing Director. "The Pryme team remains focused on our goal of generating earnings and building reserves towards our target of building a A$300-A$500 million company in 3 to 5 years. We're expecting a strong 2008 to build on these latest results."

A natural gas discharge pipeline will be run and surface facilities installed in preparation for the fracture stimulation of the deepest zone. Just like the Spinks well we plan to test the well directly into the sales line to preserve the integrity of the formations. This completion phase should take approximately 60 days with the sale of first products planned for some time commencing in March 2008.

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. Approximately ten drilling locations have been identified in the project with the leasing of acreage continuing. Pryme has a 40% working interest (30% Net Revenue Interest) ownership in the project.

Contact Information

  • For further information please contact:

    Justin Pettett
    Chief Executive Officer
    Pryme Oil and Gas Limited
    Telephone: +61 7 3371 1103
    Email: justin@prymeoilandgas.com

    Ryan Messer
    President/COO
    Pryme Oil and Gas, Inc.
    Telephone: +1 832 487 8607
    Email: ryan@prymeoilandgas.com