Hydrocarbon Dynamics Ltd. (PYMOF)

[OilStockReport]

Quite the volatile action on this thinly traded stock. Wonder where it is going to finally start to settle in. Project looks very interesting.

Drilling of the Deshotels 20-H No.1 well in the Turner Bayou Chalk project has been completed to a measured depth of 18,748 feet (5,714 metres). Preparation of the well bore to install the production liner (casing) is underway.

The total length of the horizontal leg is 3,755 feet (1,144 metres), 745 feet (227 metres) short of the planned length of 4,500 feet (1,371metres). The decision to stop drilling of the horizontal leg was taken after consideration of the very encouraging results to date and the mechanical risks involved in taking the well to the planned measured depth.

Justin Pettett, Pryme’s Managing Director, said “numerous significant hydrocarbon bearing fracture zones and many smaller fractures have been intersected in the horizontal leg. Preliminary evaluation of these along with other data gives us a high degree of confidence that the Deshotels 20-H No.1 well will be completed as a producer.”

The well bore is being prepared for the installation of the production liner which will take 7-10 days to run. Following this, the drill rig will be moved off site and flow testing equipment set up. Flow testing is expected to commence by early December and will run for several days. Shareholders will be kept informed as these activities progress.

Pryme has a 40% working interest (30% net revenue interest (NRI)) in this well.

Project Description

The Deshotels 20-H No.1 well in the North Bayou Jack Field is the first deep well to be drilled within the Turner Bayou 3D seismic survey. The well has been drilled to a depth of 16,400 feet (5,000 metres) vertically with a 3,755 feet (1,144 metre) horizontal leg through the Austin Chalk formation which is predominantly oil bearing in this region.

Turner Bayou is one of Pryme’s high value projects. It is located in Avoyelles Parish, Louisiana. Pryme has a 40% interest in the Turner Bayou Chalk project area, which is contained within the Turner Bayou 3D seismic survey, and a 52% interest in the balance of Turner Bayou. The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Primary targets are contained within six prospective formations ranging in depth from the Frio formation at 3,000 feet, to the Tuscaloosa formation at 18,000 feet.