Pryme holds a 100% WI and 81.25% NRI in 4,049 acres located in Kay County, Oklahoma near Ponca City. The leases were largely acquired during 2015 with a three year primary term and two year bonus term.
During the Quarter the board commenced a detailed review of the Newkirk project to better understand its prospectivity and commercial attributes in currently depressed energy price environment. This report will be completed during the current quarter. At this time, the Operator, Empire Energy Group (ASX:EEG) has no short-term plans to drill any wells.
Oil and gas leases held by Pryme are contiguous with an additional 4,936 acres held by EEG. Under a Joint Operating Agreement, the two companies have agreed to the further development of the combined acreage (8,985 acres) on a 50/50 basis.
On 27 November 2015, Pryme reported an updated Independent Reserve Report for the Project. The Reserves estimates are shown in the table below and are for 2P (Probable) Reserves only; 3P (Possible) Reserve and Contingent Resources have not been estimated.
The Reserves were reviewed by Keith Drennen and J.P. Dick of Pinnacle Energy Services LLC (Pinnacle), Registered Engineers in the state of Oklahoma in accordance with the Society of Petroleum Engineers, 2007 Petroleum Resources Management System.
Proprietary 3D seismic survey targeting the Wilcox, Austin Chalk and Eagle Ford formations;
major phase oil, with some natural gas production.
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