The company today said its US operator Belle Exploration had successfully drilled Coleman-7, previously called Coleman-6, to a total depth of 4500 feet (1371 metres) and encountered shows of oil in eight Wilcox sands.

Pryme said core analysis had indicated good permeability and oil saturation in 34ft of Wilcox and the well is now being cased for completion in C-2, the primary field pay sand.

The well was designed to gain structure over Coleman-3 and to penetrate the F-2 sand in a thicker portion of the reservoir, in addition to targeting five secondary objectives.

The company said the successful oil shows in Coleman-7 open up another development well location, Coleman-8, to the northeast, which it expects to successfully test the F-2 sand found in Coleman-7.

Managing director Justin Pettett said the incremental increase in production is likely to increase Pryme’s cash flows.

“We are very happy with the results of this well as two other wells in the Routh Point Field that are completed in the C-2 sand have been extraordinary producers,” Pettett said.

“We expect this incremental production to add to our cash flow base as the well is competed within the next 30 days.”

Pryme said it would continue to “aggressively” pursue the drilling program planned for LaSalle for the remainder of 2006.

The company has a 13% working interest, and 9.75% net revenue interest, in the Coleman-7 well.

It joined the project and listed on the Australian Stock Exchange in April.