Oil and Gas Reserve Statement at 1 July 2010

	1P oil reserves increased by 28% over 6 month period ending 30 June 2010
	1P oil and gas reserves in terms of Oil Equivalent increased by 20% over 6 month period ending 30 June 2010

The following table sets out the estimated proved, probable and possible oil and natural gas reserves for the Company's projects in Louisiana and Mississippi, USA. All reserves are net to Pryme and net of third party royalty interests.

The reserve increases for the Four Rivers and the Catahoula lake projects are attributable to exploration success and acquisitions (after adjustment for production to 30 June 2010). The reserve increase for the Tuner Bayou project is attributable to the Company’s decision to retain a 40% working interest in the Turner Bayou Chalk project. The reserve decline for the LaSalle and Raven Projects is mainly attributable to production.

Reserve estimates were made by performance, pore-volume analysis and analogy methods. The reserves presented in this report are estimates only and should not be construed as being exact quantities. Oil and natural gas prices used in the estimation of reserves are based on NYMEX Futures Pricing as of June 30, 2010.

Notes:

1. Abbreviations:
1. MBO – Oil volumes expressed in thousands of stock tank barrels (MBO), where one barrel is equivalent to 42 United States gallons
2. MMcf - Gas volumes expressed in millions of standard cubic feet (MMCF) at 60 degrees Fahrenheit and the contract pressure base
3. MBOE – Oil equivalent expressed in thousands of stock tank barrels (MBO), where one barrel is equivalent to 42 United States gallons.
2. Oil equivalent of natural gas – 6.1MMcf of natural gas equivalent to 1 barrel of oil
3. Proven reserves for Turner Bayou are expressed as proven undeveloped reserves, non producing

These reserve estimates have been calculated in accordance with the standard definitions set out by the Society of Petroleum Engineers by a petroleum engineer with over 30 years experience in the petroleum industry. Further information is available at spe.org. Click here for more information.