HYDROCARBON DYNAMICS LIMITED — Call Transcript 2010

Sep 1, 2010

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2 September 2010

The Company Announcements Platform Australian Securities Exchange Exchange Centre 20 Bond Street SYDNEY NSW 2000

Boardroom Radio Broadcast

Pryme Oil and Gas Limited (ASX: PYM) has joined the Boardroom Radio Australia (BRR) team to record and publish online broadcasts of various announcements its makes through the ASX. Please find enclosed a copy of the transcript of the latest BRR broadcast.

To listen to the broadcast simply click on the following link: http://www.prymeoilandgas.com.au/boardroomradio.htm

PRYME OIL & GAS LIMITED (PYM) provides the opportunity to listen to an audio broadcast with Mr Justin Pettett, CEO and MD in a presentation titled "Pryme Complete Placement, Announce Rights Issue and Make Solid Drilling Progress at Turner Bayou Chalk Project."

The presentation details are as follows:

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• Pryme Complete Placement, Announce Rights Issue and Make Solid Drilling Progress at Turner Bayou Chalk Project

• Presented by Mr Justin Pettett, CEO and MD

• Wed, 1 Sep 2010 11:00am AEST

A copy of this announcement is available at the ASX and can be viewed on the Company’s website www.prymeoilandgas.com.

For further information please contact:

Justin Pettett Managing Director Pryme Oil and Gas Limited Telephone: +61 7 3371 1103

Ryan Messer Chief Operating Officer Pryme Oil and Gas Limited Telephone: +1 713 401 9806

Website: www.prymeoilandgas.com

ASX Code: PYM OTCQX Code: POGLY

Pryme Oil and Gas Limited is an Australian oil and natural gas producer and explorer with interests in the Gulf States of the U.S. The company has oil and gas exploration projects focused on Louisiana, the fifth-largest oilproducing state in the U.S. These projects are funded in part by existing cash flow. Pryme’s board of directors and management team has over 100 years of energy industry experience and has uniquely focused local knowledge, underscored by the proven track records of its managers and directors. Directors of the company are George Lloyd (Non Executive Chairman), Justin Pettett (Managing Director) and Ryan Messer (Executive Director) and Greg Short (Non Executive Director).

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RADIO INTERVIEW WITH JUSTIN PETTETT, MANAGING DIRECTOR, PRYME OIL AND GAS LIMITED, CONDUCTED ON WEDNESDAY, 31 AUGUST 2010

• Q1 Hello and welcome to Boardroomradio. Today I am joined by Mr Justin Pettett who’s the Managing Director of Pryme Oil and Gas. Justin, great to have you on the line.

• A1 It’s good to be here. Thanks, Tom.

• Q2 Justin, you’ve announced that you’ve raised $1.7 million by way of a placement and you also have a 1 for 8 non-renounceable rights issue on the way. Can you talk to me about, first of all, how the conditions were for the placement and then, secondly, about some of the details of the rights issue?

A2 Late last week, the Board decided to go out and do a small placement. We’re obviously drilling one of our most important wells at the moment, the Deshotels well in our Turner Bayou Project, and the Board made the decision that we should go out and do a small capital raising, a small placement under our 15 per cent, which we’ve done, to give to us a good buffer of capital should there be any small overruns, but to get us to the other side of a result and, hopefully, a successful result on this first well.

Q3 And then, in terms of the rights issue, what are the details of that and what are the important dates that shareholders need to know?

A3 With the rights issue, we obviously have a very loyal, supportive and very patient shareholder base and, to coincide with the placement, we want to make sure that all shareholders are offered a proportionate amount of shares at the placement price. But what we’ve done as a Board is we’ve structured the rights issue in such a way that, whilst the record date will be at or around 14 September, which is a couple of weeks away, the offer will be open for the maximum allowable time, which will be two months. So what that will mean for shareholders that do hold shares in Pryme on 14 September is they’ll have the opportunity to get a lot more information from this current well and, hopefully, we have a result by middle of November when the rights issue will actually close. So shareholders will have the opportunity to secure rights at the same price as the placement but not have to subscribe for those rights until there’s a result on the well - so a lot of leverage for our shareholders.

Q4 Yes, certainly. Now, I take it drilling progress to date has been pretty good with no unexpected problems at the Turner Bayou Chalk Project.

A4 That’s right. We’re just over 14,000 feet in depth on our vertical section of our well. It’s around 4,200 metres. We’re expecting to finalise the vertical section of the well in the next week and, within the next fortnight, we’ll begin our turn and drill our 4,500 foot horizontal leg. Everything has been going to plan. We should have some results, as we’ve announced today, whether to complete the well or not, near the beginning of October and then, at the

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end of October/beginning of November, we should be flow testing. So it’s a very exciting time for the Company and we’re obviously looking forward to a good result. Q5 Absolutely. Best of luck with all of that, Justin. Thanks very much for joining us. A5 Thanks, Tom.

INTERVIEW CONCLUDED

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