Pryme Oil and Gas Limited (ASX:PYM) Turner Bayou Operational Update
Brisbane, Mar 1, 2011 AEST (ABN Newswire) - Pryme Oil and Gas Limited (
ASX:PYM) (PINK:POGLY) provides the following update on operations and production at its Turner Bayou project in Louisiana, USA. Turner Bayou comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Primary targets are contained within six prospective formations ranging in depth from the Frio at 3,000 feet, to the Tuscaloosa at 16,200 feet.
Deshotels 20-H No.1 (40% Working Interest / 30% NRI)
Mechanical issues continue to impede the effective completion of the Deshotels 20-H No.1 well in the Turner Bayou Chalk project. Completion crews were unable to run 2 7/8 inch tubing past the damaged liner hanger (located at approximately 15,000 feet) and into the top of the 4 1/2 inch production liner (casing). As a result, the well will be put into production mode and remediation efforts suspended until after the drilling of the next well.
The well has been producing intermittently since early January and has produced approximately 13,000 barrels of oil (3,500 net to Pryme) which have been sold to market at spot prices. Spot prices for oil are currently in excess of US$100 per barrel. The well is currently being put back into production and once steady state production has been established the details will be announced.
The project focus is now on the drilling of well number two which is expected to spud in early May.
"Turner Bayou is a company transforming project for Pryme. We are confident that the mechanical issues have been addressed for well number two and that the project will create great value for the Company and its shareholders. We will keep shareholders informed on progress and production rates as information comes to hand," said Justin Pettett, Pryme's Managing Director.
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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