Primeline Appoints Investors Relations Company
Primeline Energy Holdings Inc. (“Primeline” or the “Company”), listed on the TSX Venture Exchange Inc. under the trading symbol “PEH”, is pleased to announce that it has entered into an Investors Relations Agreement with Port Mercantile Capital Inc. (“Port Mercantile”), dated December 1st 2006 (the “Agreement”) to provide corporate communications services to the Company.
Under the Agreement, which is for a period of 18 months, Port Mercantile will receive $5,000 per month as retainer. These payment will be made from the Company’s work capital. In addition, Port Mercantile will receive, subject to regulatory approval, an option to purchase 150,000 shares in the capital stock of the Company at an exercise price of $1.60 per share. These options comply with the requirements of Exchange Policy 3.4, Investor Relations, Promotional and Market-Making Activities, will vest over an eighteen month period and will be subject to a four month hold period. Port Mercantile, a Belize incorporated company, is a corporate communication company wholly owned by Mr. Eric Schjelderup. It currently holds 200,000 shares of the Company capital stock. It is at arm’s length with the company.
In addition, the Company today awarded options to its non-executive directors, management and consultants to purchase up to 1,200,000 shares in capital stock of the company at an exercise price of $1.60 per share (including the options to Port Mercantile as above mentioned).
The Company is currently continuing its processing work of the recently acquired 550 sq km of 3D seismic around its discovery. The processing is expected to complete in December 2006 to allow the interpretation to start. The Company plans to be “ready to drill” in 1st Quarter 2007 and subject to rig availability, to drill one to two wells in the Lishui Gas Play to increase the current resource base to justify a commercial development. The Company, in close cooperation with CNOOC (CEO-NYSE) is continuing its search for a drilling rig for its planned drilling programme, although rig availability is extremely limited due to current demand.
Primeline owns a 75% interest in the Petroleum Contract for Block 25/34 in the East China Sea with China National Offshore Oil Corp. (parent company of CNOOC Limited, www.cnoocltd.com) and is also the operator for the Block. The Company made the gas discovery, Lishui 36-1, within the Block through two wells which have flow rates of 9.9 and 12.6 mmcfd of natural gas, respectively. The Block encompasses 7,006 sq km and contains many other potential prospects in addition to the Lishui gas play.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
For More Information Please Contact:
Primeline Investor Relations
Tel. + 44 20 7501 0688
Fax. + 44 20 7501 0699
Toll Free: 1 877 818 0688
E-Mail IR@pehi.com Web Site: www.pehi.com