HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2008

Jul 20, 2008

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21 July 2008

Gas Discovered in Turner Bayou Well

The fourth exploration well (Indigo Minerals 29 No. 1) in the Turner Bayou 3D seismic project reached a total depth of 4,600 feet over the weekend and was logged, resulting in the discovery of natural gas in the Frio sand interval. Production casing is currently being run.

“We are thrilled with this result,” said Justin Pettett, Pryme’s Managing Director. “Three out of the four wells drilled to date in this project have resulted in discoveries and this well has the best reservoir characteristics yet identified. The results confirm the predictions made by our team through interpretation of the location’s seismic attributes.”

Drilling will continue in the Turner Bayou project over the coming months and we are now planning for a gas gathering system to be built from the southern end of the survey. Building the gas gathering system is a priority for Pryme as it is integral to selling gas from the recently drilled wells in the northern portion of the project area.

Project Description

Pryme has a 52% interest (39% NRI) in the Turner Bayou project which is contained within approximately 80 square miles (50,000 acres) of proprietary 3D seismic. Primary targets consist of six prospective formations ranging in depth from the Frio, at a depth of 3,000 feet, to the Tuscaloosa at 16,000 feet. Executing the Turner Bayou Project has been an important objective since Pryme’s ASX listing; it has the potential to produce substantial value for shareholders.

For further information please contact:

Justin Pettett Ryan Messer Managing Director President Pryme Oil and Gas Limited Pryme Oil and Gas Inc Telephone: +61 7 3371 1103 Telephone: +1 832 487 8607 Email: justin@prymeoilandgas.com Email: ryan@prymeoilandgas.com

Pryme Oil and Gas Limited is an Australian oil and natural gas producer and explorer with interests in the U.S., the world’s biggest oil market. The company has an exceptional suite of exploration projects focused on Louisiana, the fifth-largest oil-producing state in the U.S. These projects are funded in part by existing cash flow. Pryme’s management team has over 75 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), Ryan Messer (Executive Director) and Ananda Kathiravelu (Non Executive Director).

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