The company said the well reached its planned total depth of 10,000 feet and encountered the C and Price sand primary objective zones.

Managing director Justin Pettett said Patterson-16-1 compares favourably with the recently completed Grable-15-1 well, which is producing at a rate of about 850 million cubic feet of gas and 20 barrels of condensate per day.

Forward operations are to set production casing and test the two primary zones.

A natural gas discharge pipeline will also be run and surface facilities installed in preparation for fracture stimulation of the deepest zone.

According to Pryme, the well will be flow tested directly into the sales pipeline to preserve the integrity of the formations.

The completion phase should take about 45 days with the first sale of products planned for August 2008.

Pryme has a 40% working interest (30% net revenue interest) in the Raven project.

In other company news, Pryme has farmed out its interests in the Updip Tuscaloosa Project in central Louisiana to newly formed Australian oil and gas exploration company, Promesa.

The farm-out terms include: reimbursement of all of Pryme's project-related costs to date as well as the retention of the company's interests in the first well drilled in each prospect and overriding royalty interests in production from the project area.

The farm-out also includes the Atocha prospect, which has similar formations to BP's Port Hudson Field, according to Pryme.

Promesa is finalising an initial public offering of its shares and intends to apply to have its shares quoted on the Australian Securities Exchange by early July.