Drilling rig for first step-out well secured and on site 30 days ahead of schedule
  by: OilOnline
  Friday, May 26, 2006

The drilling rig, for the first development wells, at Pryme Oil and Gas’ the LaSalle Parish Project has been moved on site 30 days ahead of schedule, and is preparing to spud the SU118 No.2 located in the Shirley State Acreage.

The well will be drilled to a depth of 4,400 feet in an effort to establish production in a northern G-1 reservoir in the Shirley/State Lease area of Catahoula Lake Field (see enclosed location map.) The G-1 Sand of the Wilcox Formation was previously penetrated by the VU B; Shirley et al – DWTD – State No.1 and the WX D RC SU 118 DWTD et al No.1, both to the south of the proposed location and drilled by Belle Exploration, Inc.

The SU 118 No.2 is being drilled to gain 8 to 10 feet of structure over the two wells previously mentioned that encountered 4-5 feet of oil shows over water.

The proposed location for the SU 118 No.2 is situated on a structural nose that is plunging to the south, and should be in a crestal position to the wells previously drilled in a down dip portion of the reservoir.

There are three other sands of the Wilcox Formation that are secondary objectives for the SU 118 No.2, these secondary objectives include the E-1, E-2 and F-2 sands.

The G-1 sand is currently producing from a southern reservoir. The WX D RC SU 117 Shirley – State No.1 is currently producing this southern reservoir at a current rate of +/- 75 BOPD and has cumulative production that exceeds 56,000 barrels of oil from December 2003.

Pryme Oil and Gas managing director Justin Pettett said it was pleasing to be in the position to start drilling ahead of schedule.

“Our interests in LaSalle Parish, Louisiana will provide us with immediate cash flow, enabling us to fund the development of further wells another 20 wells through to December 2007,” Mr Pettett said.