Primeline Appoints New CEO
September 30, 2005, London, England. Primeline Energy Holdings Inc. (TSX Venture: PEH) (“Primeline” or the “Company”) is pleased to announce that Dr. Ming Wang has been appointed Chief Executive Officer of the Company.
Dr. Ming Wang has been employed with the Company since 1994, Vice President — Exploration since 1996 and a director since 2000. He has been responsible for all Company’s technical operations since 1996, including the drilling of Lishui 36-1 Gas discovery in 1997, the 3D seismic program in 1998 and co-operation with China National Offshore Oil Corp. (“CNOOC”) on the two appraisal wells drilled between 2000 and 2002. He is the key member of the management team that has discussed the development of the local gas market with Wenzhou local authorities. He has also been closely involved and led contract negotiations with CNOOC including the recent Petroleum Contract for Block 25/34. Dr. Wang has a graduate degree in Geology from Nanjing University in China and a PhD degree in Geology from Imperial College, London. Prior to joining Primeline, he has worked on several oil and gas basins in China and in the mining industry in Australia. Dr. Wang has extensive contacts in the Chinese business circles.
The Company is also pleased to announce that it has acquired from CNOOC all the existing data inside Block 25/34 that it did not previously have, including over 15,000 km of 2D seismic data and information on 6 additional regional wells inside Block 25/34. All this data has been received by Primeline and is being integrated into the existing database. With the new data, the Company now has over 25,000 km of 2D seismic data and information on a total of 12 wells in and around the 7,006 sq km Block 25/34 in the Lishui Basin. It is worthwhile to note that 6 out of the total 9 regional wells (in additional to the Lishui 36-1 gas discovery) in the Lishui Basin have had various degrees of oil and gas show or flow, indicating the exciting hydrocarbon potential in the area. The Company will soon start a regional re-evaluation utilizing all this information.
Primeline has recently concluded a successful testing program and has decided to proceed with the re-processing of the existing 233 sq. km of 3D seismic data the Company acquired in 1998 over Lishui 36-1 gas discovery. The Company is currently negotiating terms with the processing contractors.
The Company is also finalizing the design of a new 3D seismic acquisition program and has been in discussion with various contractors aiming to secure a vessel at the earliest optimal time.
All reprocessing and new acquisition of 3D seismic data is intended to assist in the selection of the next appraisal well location to prove up additional resources to those that have already been tested by the two Lishui 36-1 gas wells in Block 25/34. The Company hopes to drill this well in the first half of 2006, subject to rig availability. The regional work above mentioned will allow the Company to map out the future exploration potential of this large acreage.
The Company and its affiliated company, Primeline Petroleum Corporation (“PPC”), are contractors (collectively “Contractors”) under a Petroleum Contract with CNOOC for Block 25/34 in the East China Sea. The Company and PPC own 75% and 25% respectively of the Contractors’ interest in the Petroleum Contract.
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
Web Site: www.primelineenergy.com
Port Mercantile Capital Inc.
Tel: +1 604 649 1981
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.