|
LASALLE PARISH PROJECT
 The LaSalle Parish Project is located in Louisiana, approximately 20 miles northeast of Alexandria, Louisiana. The area is generally referred to as the Wilcox Basin, and is known for its prolific, long-life oil production. The Project generates regular monthly income from oil sold.
Key Value Drivers:
- Current net production average of 1,200 barrels per month derived from a stake in 24 producing oil wells;
- Project Risk Spread: Located in six separate fields (1,125 acres) in LaSalle Parish, Louisiana;
- Increasing cash flow: Currently A$1.5M and growing in annual net operating income (production revenue less production expenses) but subject to fluctuating oil prices;
- Incremental growth opportunities with relatively low investment via development drilling.
By industry standards, drilling in the Wilcox Basin is relatively straightforward, low cost and without much mechanical risk. The key attributes of the LaSalle Parish Project are:
- a proven oil and gas province;
- an economic rate of exploration and development success;
- relatively shallow, low-risk drilling;
- extensive oil and gas gathering and transportation infrastructure;
- low development costs with short lead time for revenue generation after well completion work;
- a ready market for the oil;
- stacked pays or formations behind pipe yet to be developed;
TURNER BAYOU PROJECT
 Turner Bayou is one of Pryme's high value projects. Pryme has a 52% interest (39% NRI) in the project comprising approximately 80 square miles (50,000 acres) which have been covered by Pryme's proprietary 3D seismic. Primary targets consist of six prospective formations ranging in depth from the Frio formation at 3,000 feet through to the Tuscaloosa formation at 16,000 feet.
Key Value Drivers:
- 80 square miles of 2007 high resolution proprietary 3D seismic survey
- The main oil and gas objectives at different depths are: the Miocene/Frio sands; the Cockfield/Yegua and Sparta sands; Wilcox sands; Austin Chalk and the Tuscaloosa sands;
- High rate of return in the region;
The geophysical evaluation of deeper anomalies in the Turner Bayou project area has resulted in the identification of a number of prospects at depths between 8,100 feet and 18,000 feet. Within this section the Eocene, the Lower Cretaceous and the Austin Chalk intervals are the higher priority formations.
Analogous production from nearby oil and gas fields provides many favourable indications of the exploration potential of these formations.
The cost of exploration of the deeper Turner Bayou prospects is much higher than for the shallow prospects and Pryme will evaluate faming-out a portion of the working interest in the deep prospects to other explorers to mitigate risk, reduce expenditure. Typical farm-out terms would include an up-front cash payment, to compensate for Pryme's past expenditure, and a carried working interest through to completion for Pryme.
Successful exploration of the deeper Turner Bayou prospects has the potential to create significant value for shareholders.
*To learn more about 3D Seismic Exploration, please visit our Learning Center
RAVEN PROJECT
 The Raven project covers mineral leases in the prolific Cotton Valley and Hosston natural gas trends in Lincoln Parish, Louisiana. The project exists along a natural gas fairway of Cotton Valley marine bars which represent the exploration targets.
The producing life of the Cotton Valley and related intervals is quite long, normally around twenty years. Cotton Valley gas typically has a high Btu content and both light oil (condensate) and gas are often produced from the same formation. Raven differs from Turner Bayou in that the Cotton Valley formation covers many hundreds of square miles and is regarded as an “engineering play.” The exploration objective is to achieve the trend average of production (which has been established over a number of years of gas production from the productive formations) over a number of wells. The geological risk is limited to finding the parts of the Cotton Valley formation that are most permeable.
Further participation in drilling wells throughout the Raven Project has been suspended by Pryme. Pryme has a good mineral acreage position in the Raven project with each producing well holding a 640 acre section of minerals to all depths.
ATOCHA PROJECT
 The Atocha Project, located in East Baton Rouge and East Feliciana Parishes in Louisiana, covers 6,400 contiguous acres within the up-dip fairway of the Tuscaloosa Trend. The Tuscaloosa Trend was discovered in 1975 by Chevron. It has produced over 2.8 Trillion Cubic Feet (TCF) of natural gas and 120 million barrels of condensate over the past 32 years.
Atocha is located five miles north of BP's Port Hudson Field which is the best producing field in the trend and contains the HM Brian No.1 well which was drilled by Shell Oil in 1980 and cased to a depth of approximately 17,700 feet. Pryme is the operator of the project and has a 25% working interest and a 3% overriding royalty on production.
FOUR RIVERS PROJECT
 Pryme has a 25% Working Interest (18.75 - 20% Net Revenue Interest (NRI)) in the Four Rivers project which extends from Winn, Concordia and Catahoula Parishes in Louisiana to Adams, Jefferson and Wilkinson Counties in Mississippi. The project is targeting multiple “stacked” oil zones throughout the Middle-Wilcox formation and, to a lesser extent, shallow Frio natural gas zones, at depths ranging from approximately 4,000 to 7,000 feet. Wells drilled in the Middle-Wilcox exhibit long production lives with low decline rates after the initial flush oil is produced and relatively steady production is established. They are relatively inexpensive to drill and typically have low operating and on-going maintenance costs.
The Middle-Wilcox contains sediments located in central Louisiana and western Mississippi. It is a proven source of large reserves of oil with some wells having sustained commercial production since the 1940’s. There have been over 160,000 commercially producing wells established in and around the Wilcox Basin since 1910. The area is a proven oil province with the exploitation of multiple accumulations of Wilcox oil having produced for decades.
CATAHOULA LAKE PROJECT
 Pryme holds a 50% ownership interest in Pryme Lake Exploration, LLC (PLX) which in turn owns a 50% Working Interest (36.5% Net Revenue Interest (NRI)) in 7,676 mineral acres within Catahoula Lake and its surrounds and a 50% ownership interest in a drilling barge, service barges, crew boats and associated equipment which are required to drill and operate on Catahoula Lake. Pryme is also entitled to a 2% overriding royalty interest in any production in which PLX participates throughout a 30,000 acre Area of Mutual Interest (AMI).
The project is located on Catahoula Lake in LaSalle, Rapides, and Grant parishes, Louisiana. It will test the same multiple “stacked” oil zones throughout the Middle-Wilcox formation as the Company’s existing oil production in the LaSalle Parish and Four Rivers projects; however, in a much less drilled environment. Wells drilled in the Middle-Wilcox exhibit long production lives with low decline rates after the initial flush oil is produced and relatively steady production is established. Ultimate oil recoveries are expected to range from 50,000 through to 200,000 barrels for each successful well.
|
