Current daily production from the Capitola Oil Project is steady at approximately 135 Bbls of oil (100 barrels of oil net to Pryme) and 180 Mcf of natural gas (135 Mcf of natural gas net to Pryme). The Mahaffey Bishop and McCain wells continue to produce at levels around their initial production rates.
The Shari Lynn No.1 well in the Sweetwater acreage block (100% Working Interest, 75% Net Revenue Interest) is the fourth well to be drilled in the project. It is currently producing approximately 10 barrels of oil and 40 barrels of water per day. Although too early to conclude, the relatively high water production may indicate that a water bearing zone above the treated interval of the Canyon Sand formation may be contributing.
If this is the case the relatively high water flow may impede oil production until a remedy is implemented. Analysis of the well and surrounding geology is presently underway to identify the source of water (frack fluid or formation water) and determine potential actions needed to increase oil production. The initial potential of the well will be determined following the establishment of steady oil production.