HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2011

Jan 30, 2011

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31 January 2011

Turner Bayou Operational Update

P ryme Oil a nd Gas Li m ited (“Pry m e”) provides the foll o wing upda t e on oper a tions and p roduction a t i t s Turner B ayou proj e ct. Turne r Bayou c o mprises a p proximately 80 squa r e miles (5 0 ,000 acre s ) w hich have been imag e d by a proprietary 3D seismic s u rvey. Primary targets are contai n ed within six p rospective formations ranging in depth from the Frio at 3,000 feet, to the Tus c aloosa at 1 8,000 feet .

Deshotels 20-H No.1 (40% Working Interest / 30% NRI)

T he Desho t els 20-H N o.1 well is currently p roducing a t a rate of 630 barrel s of oil an d 430 Mcf o f n atural gas per day.

T he lowest productiv e interval w ithin the h orizontal l e g was re-perforated using tubi n g convey e d p erforating e quipment. Mechani c al issues h ave temporarily prev e nted completion of a f ocused acid treatment o f the perforated interv a ls. The w e ll will be f l owed to cl e an up the perforations and a pl a n w ill be developed to c o mplete the acidizing a n d completion of the w ell in the c o ming wee k s.

P lanning for the seco n d Turner B ayou chalk well, to b e spudde d before th e end May this year, is u nderway.

F or further information pl e ase contac t :

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

Ryan Messer Chief Operating Officer Pryme Oil and Gas Limited Telephone: +1 7 1 3 401 980 6

Website: www.prymeoilandgas.com ASX Code: PYM OTCQX Code: POGLY

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