Replies to This Discussion

Permalink Reply by Joe Aldridge on April 18, 2011 at 2:34

This is a portion of the address by George Lloyd of Pryme Oil and Gas (now Pryme Energy) to the shareholders at the annual meeting over the weekend.

 

Annual General Meeting 2011 Chairman’s Address The Turner Bayou and Catahoula Lake projects were the focus of most of our efforts in 2010.  These are our two core projects and will continue to attract considerable effort over the next few years.  Each of these projects has the potential to make a significant contribution to the value of the Company.  Turner Bayou has the potential to lift our oil production from the present 150 barrels per day to several thousand barrels per day.  Catahoula Lake has the potential to steadily lift production at a relatively low cost and risk. We commenced drilling our first Turner Bayou well in 2010 and completed it early this year.  While the well has not met our production expectations, due to  mechanical issues during completion, it has confirmed the basis on which we have chosen to thoroughly explore the Austin Chalk formation within our leasehold.  The well also provided tantalizing oil shows from the Wilcox formation, which is above the chalk, and the Eagle Ford formation immediately below the chalk; once our chalk exploration program is well-established we expect to test both of these formations in greater detail.  The first Turner Bayou well is currently producing at about 200 barrels of oil and 150 Mcf of gas per day; we expect each successfully completed chalk well should initially produce over 1,000 barrels per day of oil of which Pryme’s share would be over 300 barrels per day. A considerable effort has gone into evaluating the technical difficulties which were encountered with the first well and steps have been taken to avoid these in future wells.  We are advanced in preparing for the next well and expect to spud next month.   Current planning for the Turner Bayou project contemplates a fully developed field of over 30 Austin Chalk wells at a spacing of around 640 acres, we expect to be well advanced with our third Austin Chalk well by the end of this year and then drill up to 6 new wells during 2012, increasing to 12 new wells per year in 2013 until fully developed.   We also expect to re-enter the first Turner Bayou Chalk well during the year and take further steps to remediate it and lift its production.   Austin Chalk wells typically show high initial production followed by a rapid decline to a lower level that is generally sustainable over many years.  Our planning shows that, by the fourth well, we should have a project which is creating substantial free cash flow and is self-sustaining from a capital cost point of view.

Permalink Reply by Abington on April 20, 2011 at 14:11

Every map I have seen is different. Some seem to include all of this area of Avoyelles, others do not.  I have not seen any professional maps, only the ones that are posted on this website.

 

A friend in the Goudeau area received letter yesterday from law firm to dissolve certain existing units for the austin chalk zone in south avoyelles parish that we are in.

The letter included map showing units to dissolve.

 

but the map does not show Eola.

 

 

Permalink Reply by W Sharp on April 20, 2011 at 15:22

Thanks good to know.

Permalink Reply by Two Dogs, Pirate on April 20, 2011 at 15:45

Eola, may have been unitized back in the late 1930's. You need to go back and look on Sonris.

Permalink Reply by jack jurgens on July 3, 2011 at 12:48

Where is your property ? my family owns 500 acres in 2S 3E (sections 17 and 18) and a bit further west in 2S 2E.

in 1979, a tuscaloosa test (vertical well to depth of 16,200 feet)  was drilled on our property by Shell Oil. For mechanical reasons, could not be produced.

When the well was P&Ad, perforations were made at  13,500 to squeeze cement into formation. when the well was perforated, oil and gas flowed back into  the casing and 30 bbls of oil and alot of gas flowed up the well and were captured at the surface. I have had a geologist look at this information and the well logs, and he advised that this flow was from the austin Chalk, and there is a great liklihood of drilling success in the austin chalk at this location, and looking at the possibility of going back in through same wellbore (don't know if using old wellbore is viable.

have been approached by Anadarko, wanting 3year paid up lease, plus 2 year option, 20 % royalty and decent openning offer on rentals. anadarko told us westernmost part of Avoyelles was late addition to its project which will entail gatherring leases on 180,000 acres. A number of our neighbors with significant acreage have been approached by anadarko but have not bound lease.

We are considerring trying to put together a deal with independent oil company to drill prospect with our participation in a capacity greater than just royalty owner. If this is of interest to you, please email me so we can arrange to talk. Thanks, Jack jurgens

Permalink Reply by W Sharp on July 3, 2011 at 14:45

I am in NW/4 Sect 6, 160 ac. I leased the shallower depths to 11500, thought I had a deal to lease 11500 down to 17300 but that fell through. Would be glad to talk to you, tried to send a private message.

Permalink Reply by jack jurgens on July 3, 2011 at 14:57

my email is gjurgens@kingkrebs.com. I don't have a full tobin map, and am not sure where section 6 is relative to 17 and 18 where we are. send me email and I will respond with phone call if you can give me youe numbers. Our property has had production going back as far as 30s and 40s with sparta production in eola field and Dave Haas field. My mother was a Kelley and the property was called Star Plantation.

Permalink Reply by Two Dogs, Pirate on July 3, 2011 at 15:21

Jack Section 18 is one mile directly South of Section 6. You have Section 7 directly below Section Six and Section 18 directly to the South of Section 18.

Permalink Reply by jack jurgens on July 3, 2011 at 15:59

Thanks-think 6 and 7 will be of interest to anadarko. would like to ID and talk to landowners in 6,7,17, and 18, about alternatives.

also ,saw in prior posting you discussed prior units in eola field. I didn't think there had been prior austin Chalk production. I would have thought Those units would have been for sparta and wilcox production, much shallower than austin chalk-- if thats correct then those prior units would not have addressed in anyway the deeper austin chalk sands, and would not have established any austin chalk units for Eola.

Permalink Reply by Two Dogs, Pirate on July 8, 2011 at 9:08

I was working on the Tebow lawsuit and went over that area pretty good and don't remember seeing any chalk units. The Wilcox made a lot of folks rich in that neck of the woods.

Permalink Reply by Old Scout on July 25, 2011 at 3:00

I have a general question about proximity to a current exploratory well and the prospects of future activity on neighboring plots - and setting proper expectations.

Specifically.... if there is a well (with horizontal permits) positioned 5 miles from my parcel, and the horizontal portion points directly at my parcel, is this a favorable indication that Operators may have future plans for activity nearer to my parcel? Does the Horizontal portion in some way serve as a geological "Divining Rod" to land holders?? Thanks in advance....

Permalink Reply by Joe Aldridge on July 25, 2011 at 4:18

Scout,

I went the the Anadarko's pre-app conference on unitization in March. To the question asked of their geolgist: "Where is the Austin Chalk in this area". His answer was: "Its everywhere. It just depends on whether the formation is fractured".  So the more wells that are drilled and are productive the more they are going to drill. This round of AC drilling has just begun and will continue as long as they keep making wells and the price of oil stays high. I think you are in a very good position. Be patient, time will tell.