December 2012 Quarterly Cashflow and Activities Report
Brisbane, Jan 30, 2013 AEST (ABN Newswire) - Pryme Energy Limited (
ASX:PYM) are pleased to provide the December 2012 Quarterly Cashflow and Activities Report.
Turner Bayou Chalk Project
Rosewood Plantation 21H No.1 (61.53% Working Interest / 46.15% NRI)
At the time of writing this report, drilling of the Rosewood Plantation 21H No. 1 well in North Bayou Jack Field, Avoyelles Parish Louisiana is continuing at a total measured depth of 18,312 feet (5,581 metres). The planned total measured depth of the well is 20,310 feet (6,190 metres). Drilling is expected to be complete by sometime next week and will be followed by installation of a slotted production liner and production flow testing in late February.
Drilling commenced in mid-October and has taken longer than originally planned due to unstable sands creating unfavourable conditions for running the intermediate casing. To mitigate the risk in running the casing, the vertical portion of the well was deviated from the base of the surface casing, at a depth of approximately 4,000 feet, and re-drilled to the top of the Austin Chalk formation at a depth of 14,900 feet. Additional delays have been attributable to extensive drill rig repairs which are the sole responsibility and cost of the drilling company.
A number fracture systems have been intersected in the lateral portion of the well which have resulted in oil being produced to the surface and natural gas being flared at various stages. We expect to intersect more fractures in the 2,000 feet of lateral which is yet to be drilled.
"We have just made a trip to replace the drill bit and the motor on our bottom hole assembly," said Justin Pettett, Pryme's Managing Director. "We expect this drilling assembly to land us at our total measured depth next week. We look forward to flow testing the well as soon as the drill rig leaves and we set up a workover rig to run tubing and test the well."
Deshotels 20H and 13H Production (40% WI / 30% NRI)
The average daily production rate for these wells during the September 2012 quarter was 90 Bbls/day (27 Bbls/day net to Pryme.) Production from both Deshotels 20H and 13H wells has remained fairly stable despite the mechanical issues which impeded their effective completion.
The production units containing both the Deshotels 20H and 13H wells (approximately 2,160 acres) are held by production.
About Turner Bayou
The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Pryme has a 40% working interest in 25,029 acres (10,011 net acres) in the Turner Bayou Project and is initially targeting development of the Austin Chalk horizon. In addition to the Austin Chalk potential of the Turner Bayou project area, exploration drilling within Pryme's Turner Bayou leases has intersected the Tuscaloosa Marine Shale which is analogous to the prolific Eagle Ford Shale in South Texas.
Naturally occurring fracture systems within the Austin Chalk formation act as the reservoir and typically do not require stimulation. Pryme has drilled two Austin Chalk wells within Turner Bayou (Pryme 40% WI). The second well, the Deshotels 13H, returned an initial potential rate of 1,167bpd of oil and 600Mcf/d of natural gas despite a sub optimal completion method and resulting mechanical issues adversely impacting realised levels of production.
Four Rivers Project (8% - 25% Working Interest)
Fourth quarter oil sales of 3,414 barrels (40 Bbls/day net to Pryme) were 6% lower than for the previous quarter. This is mainly attributable to timing of oil deliveries and normal decline.
Raven Project (35% WI / 25.38% NRI)
Fourth quarter sales for the Raven project were 10,714 Mcf of natural gas and 225 barrels of condensate net to Pryme, reflecting negligible decline in gas sales over the previous quarter and a 27% increase in condensate sales due to the timing of oil deliveries.
Financial
Cash on hand at 31 December 2012 was $2.1m. Cash receipts from oil & gas sales for the quarter totalled $0.6m. Revenue before royalty payments for the quarter totalled $0.7m. Cash receipts may differ to reported revenue due to cash receipts from sales being disbursed net of royalties and the timing of working interest holder distributions by the operator.
For the complete Pryme Energy quarterly report please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-PYM-622773.pdf
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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