Capitola Oil Project Operations Update
Brisbane, May 8, 2015 AEST (ABN Newswire) - Pryme Energy Limited (
ASX:PYM) (POGLY:OTCMKTS) is pleased to announce that the fourth well drilled in the Capitola Oil Project, the Shari Lynn No.1 in the Sweetwater acreage block, has been fracture stimulated in the Canyon Sand series interval. The well was stimulated to plan and responded as expected. It is now cleaning up with frack fluid being produced to surface. The Initial Potential (IP) of the well will be determined following the establishment of steady oil production. Pryme has a 100% Working Interest (WI) (75% Net Revenue Interest (NRI)) in the Shari Lynn well which was drilled to a total depth of 5,621 feet (1,713 metres).
"The Shari Lynn is located relatively close to the Mahaffey Bishop well, which continues to exceed production expectations, and could exhibit similar production characteristics," said Justin Pettett, Pryme's Managing Director. "The Mahaffey Bishop produced frack fluid back to surface for almost 2 weeks before the appearance of an oil cut. Oil production then continued to build over the following 3 to 4 weeks before reaching a steady flow. The Shari Lynn is in the early stages of this process and we expect to see the first oil cut around the end of next week."
Current daily production is stable at approximately 140 Bbls of oil (105 barrels of oil net to Pryme) and 180 Mcf of natural gas (135 Mcf of natural gas net to Pryme) from the first 3 Capitola wells. It is expected that the Shari Lynn well will make a significant contribution to Pryme's oil production.
About the Capitola Oil Project
The Capitola Oil Project is located in an active region of the Eastern Shelf of the Permian Basin just north of the town of Sweetwater, Texas. The project contains a number of shallow, "stacked" formations to depths of 7,500 feet, with established oil production history from vertical wells. The Capitola Oil Project acreage is contained within two contiguous lease blocks referred to as Sweetwater (approx. 7,000 acres) and Claytonville (approx. 2,333 acres) to the north of Sweetwater. Pryme is the operator of the Capitola Oil project.
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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