Pryme Energy Ltd (POGLY: OTC Link) | Deshotels 13H records Initial Potential of 1,167 BOPD


Deshotels 13H records Initial Potential of 1,167 BOPD

Dec 09, 2011

OTC Disclosure News Service

Houston, TX –

The nitrogen injection procedure, to recover water and drilling mud from the horizontal section, and flow testing of the Deshotels 13H No.1 well have been completed.  The initial potential rates filed with the State of Louisiana Department of Natural Resources have been established at 1,167 barrels of oil per day (bopd), 644 thousand cubic feet of natural gas per day (Mcfd), and 350 barrels of water per day (bwpd)  on a 24/64th inch restricted choke and at a 1,870psi flowing tubing pressure. 

Additional pressure information is as follows:

Shut in tubing pressure 2,850psi
Shut in casing pressure 3,000psi
Bottom hole pressure 6,100psi

Pryme’s net revenue interest in the Deshotels 13H No.1 is 30% (40% working interest).  Oil and natural gas from the well are sold through the Deshotels 20H No.1 production facility; the revenue will supplement Pryme’s current cash position of $5.2 million.

Well production updates will be made in the coming months as the production rate and pressures stabilize.  The well is currently shut in pending the installation of an artificial lift system in order to optimize well performance over the long term. 

“This result is a significant milestone for Pryme and provides a clear indication of the potential value to be gained from the proposed multi-well development of the Company’s Turner Bayou Chalk project,” said Justin Pettett, Pryme’s Managing Director. 

“We now look forward to the completion of drilling and flow testing of the Rabalais 35 No.1 well, which is operated by Anadarko, in the northernmost part of our Austin Chalk acreage.  In addition to its production potential if successful, this well will provide valuable data to better delineate our Turner Bayou acreage.”  

About Turner Bayou

The Turner Bayou project is a significant part of Pryme’s exploration portfolio and comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey.  Primary targets are the Wilcox formation at 12,500 feet, the Austin Chalk at 15,300 feet and the Eagle Ford and Tuscaloosa Marine Shales at 16,000 feet.  Pryme has approximately 9,600 net acres within the Turner Bayou project covering all depths representing up to 30 potential drilling locations in the Austin Chalk alone. 

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

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