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Prominence takes oil-well ownership in US

20 August 2021
ASX: PRM
Rueben Hale

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).

COMPANY OVERVIEW

Prominence Energy Ltd (formerly Sun Resources NL) is an ASX listed oil and gas exploration and development Company strategically focussed on delivering value across a number of new opportunities in Louisiana, United States. Targeting assets that are expected to be commercially viable in the current low oil price environment.

COMPANY INFORMATION

ASX: PRM

Website

http://www.prominenceenergy.com.au/IRM/content/default.aspx
https://www2.asx.com.au/markets/company/prm

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