Promesa (PRA)

Shares / Stock Code

PRA

Stock Exchange / Sharemarket

ax

Promesa (PRA) vision is to become an oil and gas producer by initially investing in two projects located in central Louisiana and Mississippi in the United States of America. The first of these, known as the Atocha Project, is situated in the Tuscaloosa Trend and targets a total of 1.26 TCF of recoverable gas equivalent. Promesa initially proposes to re-enter an existing well situated within the project area. The second project, known as Four Rivers, will involve farming in on a number of moderate risk oil wells to be drilled in the Middle Wilcox trend. Investors can trade Promesa shares on the Australian Stock Exchange (ASX).

Both investment opportunities have been secured as a result of the close working relationship that Promesa has with the board and technical personnel of Pryme Oil and Gas Limited (ASX Code: PYM) (Pryme). This relationship with Pryme has culminated in the signing of two farmout agreements between Promesa Inc. (the 100% owned US subsidiary of Promesa) and Pryme Oil and Gas Inc. (the US subsidiary of Pryme). The company was listed on Australian stock market on 12 November, 2009.

The high impact Atocha Project, covers 6,400 contiguous acres in central Louisiana within the up-dip fairway of the Tuscaloosa Trend. It is located five miles north of BP’s Port Hudson Field, which is the best producing field in the trend. Pryme owns 100% of the Atocha Project and has made a considerable investment in building its land position, carrying out technical reviews and planning a program to test the prospect. Promesa has farmed into a 25% working interest in this prospect.

The Four Rivers project, extends from Winn, Concordia and Catahoula Parishes in Louisiana to Adams and Jefferson Counties in Mississippi. The project is targeting multiple “stacked” oil zones throughout the Middle-Wilcox formation at depths ranging from approximately 4,000 to 7,000 feet. Wells drilled in the Middle-Wilcox typically exhibit long production lives with low decline rates after the initial flush oil is produced and relatively steady production is established. They are relatively inexpensive to drill and typically have low operating and on-going maintenance costs.

Promesa believes that in pursuing a mix of moderate risk projects, such as Four Rivers, and a project of high risk with the potential for high reward, such as Atocha, is a sound strategy for providing the potential for growth in the short to medium term. Promesa therefore intends to apply its funds to the best possible use in selective and targeted drilling in order to firstly develop and grow earnings and reserves and secondly, to maximise the potential to make a significant oil and gas discovery. Atocha in particular is a very exciting opportunity for investors, with an appetite for risk, to be able to participate in such a potentially large project that would more usually only be available to a major oil and gas company.