The junior explorer yesterday said it would retain a 40% working interest in the large natural gas project. Operator Nelson Energy will hold the remaining 60%.

Under the deal, Pryme said it would receive all capital spent in funding the acquisition of leases and geophysical data, plus the geology and geophysical studies required by the project.

Pryme will also receive $US96,000 ($A121,925) in cash, an 8% carried working interest in the leases to the casing point in the first two wells and an average 2.8% overriding royalty interest in the entire project.

Each well in the Raven Project is expected to be drilled to about 10,000 feet to penetrate two primary objectives in the Cotton Valley formation.

“With improved drilling and reservoir stimulation technology, and an experienced local operator we expect the well success rate in these locations to be quite high,” chief executive officer Justin Pettett said.

Drilling is expected to start in the second quarter 2007.