Pryme Oil and Gas (ASX:PYM) Deshotels 20-H No.1 Completion and Corporate Update
Brisbane, Nov 23, 2010 AEST (ABN Newswire) - Pryme Oil and Gas Limited's (
ASX:PYM) (OTCQX:POGLY) Deshotels 20-H No.1 well production liner (casing) has been set and cemented in place and the drilling contractor is demobilizing the drill rig. Perforation and flow testing of the well are expected to commence in early December.
Whilst it is expected that the Deshotels 20-H No.1 well will primarily produce oil, it is also expected that commercial quantities of natural gas will be produced and piped to market. Surveying of the route to the natural gas sales line, a distance of approximately 4 miles, will commence this week.
Pryme has a 40% working interest (30% net revenue interest (NRI)) in this well.
Coporate Update
Atocha Project
Following the poor result from the re-entry of the HM Brian No.1 well in the Atocha project and a review of prospectivity of the Atocha Project tenements, the Board has determined not to participate directly in the further exploration of the project. Pryme has assigned its interest, subject to retention of a 1% overriding royalty and fees payable to Pryme in respect of future exploration, to Amelia Resources LLC. The book value of the Atocha project is approximately A$650,000 which will be written off.
Raven project
The Company has assigned a 5% working interest and its overriding royalty interests in the Raven natural gas project to Amelia Resources LLC in settlement of outstanding claims in the amount of US$167,500. Pryme will retain a 35% working interest (26.25% Net Revenue Interest) in Raven. A review of the carrying value of the project will be completed prior to year end.
About Indago Energy Ltd
Indago Energy Ltd (ASX:INK) (OTCMKTS:POGLY) is an Australian listed company engaged in oil and gas exploration, development and production. Indago's project portfolio includes liquid rich producing assets together with substantial oil development and exploration acreage in the United States.
The Company's Exploration and Production focus is on high growth oil and gas projects offering scalability of production, cash flows and reserves. Indago currently has several producing projects together with a significant acreage position. The Company's immediate focus is the development of its Capitola Oil Project located in an active region of the Cline Shale resource play along the Eastern Shelf of the Permian Basin, Texas. The project's core development and exploitation opportunities are shallower multiple "stacked" sandstones and limestones to depths of 7,000 feet which are effectively produced from vertically drilled wells. Indago's value driven model is executed through exploiting shallower, well defined intervals with advanced completion and stimulation technology within known produced oil fields together with exposure to the emerging Cline Shale resource play.
Indago's shares are publicly traded on the Australian Securities Exchange (ASX ticker: INK) and also as American Depositary Receipts on the OTCQX (ADR ticker: POGLY).
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