This time the company, which listed on the Australian Stock Exchange in April, will earn up to a 65% working interest in the Raven Prospect in the prolific Cotton Valley and Hosston natural gas trends in Louisiana’s Lincoln Parish.
In addition, Pryme will earn 45% of all promotes including overrides, carried working interests and cash fees, which it says will further boost its revenue stream and gas reserves.
Prospective gas reserves within the Raven Prospect could be up to 43.2 billion cubic feet (Bcf), according to Wave. Leasing of the prospect acreage has begun and is expected to be finalised in the coming months, with the first well scheduled for drilling in the second quarter of 2007.
Covering 4000 acres, the Raven Prospect lies along a very prolific gas fairway of Cotton Valley marine bars in the Lincoln Parish, Pryme said.
Pryme expects that between six and 10 wells would be enough to effectively drain this objective if permeabilities are encountered that are analogous to consolidated sandstones found in the Cotton Valley area.
Pryme managing director Justin Pettett said the Cotton Valley and Hosston trends have been prolific producers of gas for many years.
“Recent gas prices have initiated a significant increase in drilling activity across the area, including down-dip discoveries, new reservoir fracture techniques, and infill drilling,” Pettett said.
“The results from all three areas have been very positive. The Raven Prospect is located in a low-risk ‘engineering play’ environment and has all of the attributes of consolidating Pryme as a leading ASX-listed oil and natural gas producer and explorer.
“Through securing a majority interest in Raven, Pryme not only controls the project, but could add in excess of 22Bcf in proven gas reserves to our balance sheet, if successful.”
In May, Pryme signed its first joint venture agreement with Wave Exploration, in which it agreed to provide seed capital to help secure and develop various oil and gas prospects in Louisiana. The first three Wave prospects were the Condor project, the St Martin Parish prospect and the Lincoln Parish project.
