Pryme Oil And Gas Limited (ASX:PYM) Turner Bayou Operational Update
Brisbane, Mar 10, 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)
The well is currently producing at 240 barrels of oil per day. Natural gas is being flared onsite until such time as construction of the flow line to the main gas sales pipeline is complete. Based on well production characteristics to date we expect this rate of production to remain fairly flat.
"Understandably investors have paid a great deal of attention to the performance of the first well to be drilled in our Turner Bayou Chalk project. Based on surrounding production, the strong geological data from drilling and the encouraging physical signs, bottom hole pressures, the amount of oil produced while drilling and the sizeable flare burning on site, the Deshotels 20-H No.1 should have yielded a substantially higher production rate if it had been properly completed," said Justin Pettett, Pryme's Managing Director.
"Mechanical issues are a risk in deep horizontal wells and, unfortunately, we have encountered some of these in our first well. Nevertheless, we are confident that the Turner Bayou Chalk project will prove to be a very good investment for Pryme," said Mr Pettett.
The project focus is on the drilling of well number two which is expected to spud in early May.
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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