Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today reported that the Company has commenced the autumn environmental survey for the proposed development of Lishui 36-1 gas discovery.
Following the signing of the Agreement in Principle for gas sale as announced on 27th October, the Company is now proceeding with the preparation of the Overall Development Plan (ODP). The ODP work will involve further engineering design and survey work to provide the information required to allow the detailed design to be finalised. It is anticipated that the ODP will be commissioned shortly. However, the two environmental surveys as part of the ODP are required to be undertaken in strict time windows in spring and autumn, and, as a result, have been commissioned ahead of the other ODP work. The spring survey was completed in May 2008 and the Company has now commissioned the autumn survey.
The autumn environmental survey was contracted to China Second Oceanographic Research Institute, the contractor who completed the spring survey, assisted and monitored by CNOOC Research Centre. The field work has commenced and is anticipated to be completed by the end of November when the survey information will be analysed and the report prepared. The final report is expected in the first quarter of 2009 and will be incorporated into the ODP. The cost of this survey is approximately US$250,000, the same as the spring survey.
About Primeline Energy Holdings Inc.
Primeline is an exploration and development company focusing exclusively on China resources to become a major supplier of gas and oil to the East China market. Primeline has a 75% interest in the Petroleum Contract with CNOOC for Block 25/34, an offshore exploration area of 7,006 km2 in the East China Sea. An agreement in principle has recently been entered into for the sale of gas from its Lishui 36-1 discovery and, as referred to above the ODP for the development of that discovery is about to commence. In addition, a 3D survey has defined a number of high potential prospects near its discovery for the Company’s step out exploration programme. Previously drilled wells in and around Block 25/34 encountered oil and gas shows and flows indicating that there is significant hydrocarbon potential in the remainder of the Block. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol PEH.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Ming Wang
Chief Executive Officer
CONTACT:
PRIMELINE ENERGY HOLDINGS INC.
Dr. Ming Wang
CEO
Phone: +44 207.499.8888
Fax: +44 207.499.2288
Toll Free: 1.877.818.0688
Email: IR@pehi.com
CHF INVESTOR RELATIONS
Robin Cook
Senior Account Manager
Phone: +1 416.868.1079 ext. 228
Fax: +1 416.868.6198
Email: robin@chfir.com
Catarina Cerqueira
Associate Account Manager
Phone: +1 416.868.1079 ext. 251
Fax: +1 416.868.6198
Email: catarina@chfir.com
Please visit the Company’s website at www.pehi.com. Should you wish to receive Company news via email, please email catarina@chfir.com and specify “Primeline Energy” in the subject line.
Forward-Looking Statements
Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Primeline. These statements relate to the Company’s intention to proceed with the work required to complete an Overall Development Plan, and the sufficiency of funding to pay for the costs of the Overall Development Plan. They are based on assumptions that funding will be sufficient to pay the costs of the Overall Development Plan.. Actual results may vary from those anticipated in such statements. Funding may not be sufficient, and if it is not the Company may be unable to complete some or all of such work.
The TSX Venture Exchange has neither reviewed nor approved and takes no responsibility for the contents of this release.
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