Recently listed on the ASX, Pryme’s focus is on exploring and developing US Gulf Coast prospects.

Pryme managing director Justin Pettett said under terms of the joint venture agreement, the company would fund the lease and option costs to secure Wave’s project acreage, along with any ancillary 2D or 3D data required to turn the project to third parties for a profit, while keeping a 20% working interest on a “first right of refusal” basis.

“Pryme will receive 100% of its funding capital back from third-party investors prior to the booking of a rig to drill the prospects,” Pettett said.

“Pryme will also share in 45% of any cash profits, overrides or carried working interests for its seed-capital role in the project, with Wave receiving 55%.”

The first three Wave prospects Pryme will fund are the Condor project, the St Martin Parish prospect and the Lincoln Parish project.

The Condor project involves the acquisition of leases on several 18,000-22,000 foot (5486-6705m) Cretaceous-age prospects, including two multi-pay locations, a deeper pool test and several exploration opportunities.

The company plans to purchase 120 miles (193km) of 2D seismic data for reprocessing, while the potential exists to shoot a 3D survey over this mature prolific gas field, Pryme said.

Estimated reserves from the drilling two wells are 40 billion cubic feet of proved, undeveloped reserves.

Meanwhile, the St. Martin Parish prospect involves the acquisition of a 300-acre lease on a 12,500 foot Discorbis-Marg A age prospect. Pryme said potential exists to purchase commercially available 3D seismic data over the prospect. If successful, one well is expected to produce 30 bcf of gas and 1.8 million barrels of oil, the company said.

Lastly, the Lincoln Parish Project involves the acquisition of a 1400-acre lease on several 10,000 foot multi-pay Cotton Valley age prospects.

Pettett said the joint venture relationship “clearly defines Pryme from most other junior explorers in the Australian market”.

“Rather than relying on unrelated management teams on the ground in the USA, our participation in the ground floor aggregation of prospects allows us to set the terms of trades and control our own destiny,” he said.

“Our objective is to increase revenues and reserves for the company through minimal capital outlay using our rigorous risk mitigation strategy. Except for the drilling participation, there is little mechanical or geological risk to company.

“The third-party investor pool throughout the United States is currently booming, making these prospects highly attractive to the market and we expect them to be taken up quickly due to their size and risk level.”