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Clear Objectives to Build Shareholder Value

Pryme's mission is to seek out, evaluate and exploit oil and natural gas business opportunities in the United States. The directors utilise their collective experience to identify new projects and ensure that they are properly evaluated and professionally managed to contribute to shareholder value. Broadly, the Pryme strategy is to:

• focus on oil and gas opportunities in Louisiana and the surrounding Gulf States, whilst not excluding suitable projects in other areas in North America;
• apply a disciplined approach to project selection to manage the cost of capital;
• leverage the many years of management and advisor experience to ensure access to favourable projects;
• structure win-win partnerships between the company, its co-venturers and its mineral rights owners to access the best opportunities; and
• leverage Pryme’s specialised knowledge in target identification, drilling, well completion and production operations in order to maintain a competitive advantage.

Why the U.S.?

Profitability

The United States consumes approximately one quarter of the world's oil and natural gas production. However, it holds approximately 2% and 3% respectively of the world's oil and natural gas reserves. Security of oil and gas supply in the United Sates is a major concern. Notwithstanding this, the regions in which Pryme operates have a long history of oil and gas production and continue to be prospective for further economic discoveries on a scale which should create substantial value for Pryme’s shareholders. Important considerations for Pryme in project selection are proximity to markets, accessible delivery infrastructure and favourable operating characteristics to ensure high margins and provide some protection against adverse price movements.

By operating in the U.S., Pryme is well-positioned to take advantage of the realities of today's high global energy demand, resulting ultimately in higher oil and gas prices.

Resources

Petroleum resources available for development in the U.S. and Canada fall into three general categories:

• high risk "exploratory" or "wildcat" targets;
• shallow to intermediate targets (drilled to depths of approximately 6,000 feet) generated through regional sub surface mapping of existing well logs and reservoirs together with 2D and 3D seismic data; and
• "engineering plays" with little reservoir risk in such sub-categories as lower-permeability sandstones, coal bed methane, gassy organic shales, and "dead" oil in place.

Opportunities in these categories are relatively widespread in North America. However, they all require specialised knowledge of the earth sciences, drilling, well completions and production operations. Pryme has extensive relationships within the community of U.S. oil and gas operators and Pryme’s "deal flow" comprises opportunities in the above categories. Given the risk and cost variables among these classifications, the Company can take advantage of each of them when market prices make this possible.

Pryme is focusing on developing conventional oil and natural gas resources from typically high-permeability, highly saturated, virgin-pressure reservoirs. Consequently, Pryme’s oil and gas wells will usually be capable of withstanding quite low product prices before their economic limit is reached.