What opportunities do these regions offer a company such as Pryme?
Multiple drilling targets in and under the same acreage blocks, so the initial lease acquisition cost and often the drilling cost itself are spread over more than one objective. High flow rates from oil and gas wells, which has the effect of reducing the cost of production operations, whether expressed in terms that apply to natural gas or the production of oil. For example, Pryme’s historical production cost (or “lifting” cost expressed on a per-barrel basis) is usually no more than US$10.50. Our natural gas production costs seldom exceed US$1.85/MMBtu. You can see therefore that oil or gas prices would have to drop to precipitous lows in order for Pryme to lose money once production is established.
