Prominence Energy Ltd has claimed full ownership of its ‘Bowsprit-1’ oil-well in Louisiana ahead of exploring the multi-million barrel potential of the area’s shallow inland waters.
PRM has now secured a 100 per cent working interest in the Bowsprit project following the acquisition of Pinnacle Energy International.Under the deal, Pinnacle will receive 20.5 million shares plus a 5pc royalty on future production from the leases.
The news comes amidst growing concerns of future global oil shortages and less than a fortnight after the company announced plans to kick off 2600 meters-plus of well-drilling into a series of reservoirs, thought to potentially hold a recoverable reserve of up to 4.1 million barrels of oil.
“Having now executed the buy-out and assumed 100pc ownership, PRM has full exposure to the Prospective Resources of Bowsprit and excellent leverage in the event of success in the Bowsprit-1 well,” managing director Alex Parks said.
PRM plans to keep the market updated on developments as exploration gets underway.
The company’s Australian Stock Exchange-listed shares had risen 9.09 per cent today, trading at 1.2c (2:47 pm GMT+ 8 hours).