HYDROCARBON DYNAMICS LIMITED — Director's Dealing 2008

Jun 25, 2008

==> picture [573 x 108] intentionally omitted <==

Company Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

26 June 2008

Dear Sir

Directors Voluntarily Relinquish Options

Pryme directors, Justin Pettett and Ryan Messer, have voluntarily relinquished unvested options over 6,591,000 shares and 3,380,000 unvested rights to receive ordinary shares which were awarded in July 2007 under the Directors’ Incentive Option Plan (DIOP) and the Directors’ Share Incentive Plan (DSIP), respectively.

Australian Accounting Standards require the expensing of the cost of options granted to employees under incentive plans regardless of whether or not the performance criteria which must be satisfied prior to the vesting of the options have been satisfied. As stated in its 28 February announcement, the Directors believe that, whilst the Company is in the early stages of demonstrating its exploration and strategic development model, the cost to the Company of expensing these options is an unacceptable impost on the Company’s financial performance.

While Pryme enjoys good revenue streams from oil production in the LaSalle Parish and Raven Projects, expensing of these Options and Rights will continue to adversely impact the Company’s earnings to the extent of approximately $175,000 per month. With concerns about an expense of this magnitude and considering the best interests of the shareholders, Justin Pettett and Ryan Messer have voluntarily relinquished this part of their compensation. Accordingly, the 6,591,000 Options granted under the DIOP 2007 award and the 3,380,000 Rights granted under the DSIP 2007 award have lapsed today.

Pryme’s Remuneration and Nomination Committee will now consider the most appropriate performance based remuneration for the Company’s Executives, having specific regard to company performance and shareholder wealth.

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).

==> picture [392 x 57] intentionally omitted <==

Appendix 3Y Change of Director’s Interest Notice

Rule 3.19A.2

Appendix 3Y

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity PRYME OIL AND GAS LIMITED ABN 75 117 387 354

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Justin Pettett
Date of last notice	13 June 2008

Part 1 - Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Direct or indirect interest	Direct
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	-
Date of change	30 June 2008
No. of securities held prior to change	Ordinary Shares 2,300,000 – Pettett Pty Ltd 65,000 – Pettett Family Super Fund $0.20 Options exercisable through 30 June 2008 206,925 – Pettett Pty Ltd $0.20 Options exercisable through 30 June 2009 600,000 – Pettett Pty Ltd $0.40 Options exercisable through 30 June 2008 500,000 – Pettett Pty Ltd 3,334 – Infinity One Pty Ltd 81,668 – Pettett Family Super Fund

• See chapter 19 for defined terms.

Appendix 3Y Page 1

11/3/2002

Appendix 3Y Change of Director’s Interest Notice

Class	(a) $0.20 Options which may vest before 30 June 2009 and be exercisable by 30 June 2009. (b) Rights to receive ordinary shares under the DSIP as approved by shareholders at a general meeting held on 20 July 2006.
Number acquired	Nil
Number disposed	Nil
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil
No. of securities held after change	Ordinary Shares 2,300,000 – Pettett Pty Ltd 65,000 – Pettett Family Super Fund $0.20 Options exercisable through 30 June 2008 206,925 – Pettett Pty Ltd $0.20 Options exercisable through 30 June 2009 600,000 – Pettett Pty Ltd $0.40 Options exercisable through 30 June 2008 500,000 – Pettett Pty Ltd 3,334 – Infinity One Pty Ltd 81,668 – Pettett Family Super Fund
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	(a) Voluntary relinquishment of 3,900,000 unvested $0.20 options exercisable by 30 June 2009 under the DIOP. (b) Voluntary relinquishment of 2,000,000 unvested rights to receive ordinary shares under the DSIP.

Part 2 – Change of director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract	-
Nature of interest	-
Name of registered holder (if issued securities)	-
Date of change	-
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed	-

• See chapter 19 for defined terms.

Appendix 3Y Page 2

11/3/2002

Appendix 3Y Change of Director’s Interest Notice

Interest acquired	-
Interest disposed	-
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation	-
Interest after change	-

• See chapter 19 for defined terms.

Appendix 3Y Page 3

11/3/2002

Appendix 3Y Change of Director’s Interest Notice

Rule 3.19A.2

Appendix 3Y

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity PRYME OIL AND GAS LIMITED ABN 75 117 387 354

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Timothy Ryan Messer
Date of last notice	28 February 2008

Part 1 - Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Direct or indirect interest	-
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	Indirect
Date of change	30 June 2008
No. of securities held prior to change	Ordinary Shares 1,700,000 – Sourcerock Investments LLC $0.20 Options exercisable through 30 June 2008 206,925 – Sourcerock Investments LLC $0.20 Options exercisable through 30 June 2009 759,000 – Sourcerock Investments LLC $0.40 Options exercisable through 30 June 2008 566,667 – Sourcerock Investments LLC American Depository Receipts 555 (equivalent to 11,100 Ordinary shares) – Sourcerock Investments LLC *previously, these holdings were incorrectly amalgamated.

• See chapter 19 for defined terms.

Appendix 3Y Page 1

11/3/2002

Appendix 3Y Change of Director’s Interest Notice

Class	(a) $0.20 Options which may vest before 30 June 2009 and be exercisable by 30 June 2009. (b) Rights to receive ordinary shares under the DSIP as approved by shareholders at a general meeting held on 20 July 2006.
Number acquired	Nil
Number disposed	Nil
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil
No. of securities held after change	Ordinary Shares 1,700,000 – Sourcerock Investments LLC $0.20 Options exercisable through 30 June 2008 206,925 – Sourcerock Investments LLC $0.20 Options exercisable through 30 June 2009 759,000 – Sourcerock Investments LLC $0.40 Options exercisable through 30 June 2008 566,667 – Sourcerock Investments LLC American Depository Receipts 555 (equivalent to 11,100 Ordinary shares) – Sourcerock Investments LLC
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	(a) Voluntary relinquishment of 2,691,000 unvested $0.20 options exercisable by 30 June 2009 under the DIOP. (b) Voluntary relinquishment of 1,380,000 unvested rights to receive ordinary shares under the DSIP.

Part 2 – Change of director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract	-
Nature of interest	-
Name of registered holder (if issued securities)	-
Date of change	-

• See chapter 19 for defined terms.

Appendix 3Y Page 2

11/3/2002

Appendix 3Y Change of Director’s Interest Notice

No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed	-
Interest acquired	-
Interest disposed	-
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation	-
Interest after change	-

• See chapter 19 for defined terms.

Appendix 3Y Page 3

11/3/2002