Prime Petroleum Group Acquires Wise County Oil And Gas Lease

Dallas, TX - Prime Petroleum Group has acquired an option for the 40-acre Clement Lease located in the "Fairway" of the prolific Barnett Shale in Wise County, Texas. Prime will pay $250,000 in cash and its common stock for the lease. It has been reported the Barnett Shale is the largest unconventional gas field in the world. This lease is just north of the town of Decatur in what is known as the "Traditional Barnett Shale." The term of the lease is for three years and represents a 70% NRI (Net Revenue Interest) to which Prime will own 100% of the Working Interest. A gas transmission pipeline tap located on the lease further enhances the overall value to the project.

The legal description for the 40-acre Clement Lease is as follows:

The Southwest Half (SW/2) of the Southeast Half (SE/2) of Block17, League 3, Hunt County School Lands Survey, A-360, Wise County, Texas, and containing 40 acres more or less.

The Barnett Shale in the area of the Clement lease is at a depth of approximately 8,000 feet. Based upon comparative wells and current data in the Traditional Barnett Shale, a successfully completed well could produce as much as 2 BCF (Billion Cubic Feet) of gas. Economics at current $6.00 gas prices for this PUD (Proven Undeveloped), equates to $12,000,000 US in reserve value potential. Oil production from the Shale is common in this area but isn't represented in potential reserve calculations.

Prime is currently in the planning stages for drilling the Clement well and hopes to drill before year end.

Prime's development strategy is focused upon acquiring hydrocarbon assets at favorable prices, and low-cost reserve based properties that display significant undeveloped up side and immediate production capability. This strategy will increase yearly revenues while expanding bookable reserves to ensure the Company's long term growth and future competitiveness.

SOURCE: Prime Petroleum Group