Prima Energy Sale of Oil and Gas Properties

Prima Energy Corp. has sold all of its interest in 16,253 gross acres and 134 producing wells and related equipment in the Bonny Field located in Yuma County, Colorado. Prima also sold its 15.5% interest in the Bonny Gathering Company joint venture, which owned the pipeline, gathering, compression and dehydration facilities in the Bonny Field. Prima served as its managing venturer and operator. Total sales price was $26 million.

During mid-1998, Prima and its partners successfully completed a significant renovation of the Bonny Gathering facilities. This renovation was undertaken to increase deliverability, reduce line pressure and facilitate future field development. During 1998, Prima and its partners drilled 21 new wells in the Bonny Field with 19 completed as producers and two abandoned as dry holes. The natural gas production from the Bonny Field is sold pursuant to a gas contract that provides for a $5.90 per MMBtu price. The reserves attributable to the Bonny Field represented approximately 12% of the Company's discounted cash flow from proved reserves at December 31, 1997, the latest published reserves. Prima reported the production from the Bonny Field wells represented approximately 11% of Prima's oil and gas production revenue and 12% of net oil & gas revenue after operating expenses for the nine months ended September 30, 1998.