Primeline Commences Site Survey for Exploration Well Locations
Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSX-V: PEH), today announced that the Company has commenced the site survey of the proposed exploration well locations in the Lishui Gas Play in Block 25/34, East China Sea.
The Company has entered into a services contract with China Oilfield Services Ltd. (“COSL”) for the site survey of two proposed well locations which have been identified from the recently completed 3D seismic programme within Block 25/34. The site survey has now commenced, using vessel NH 503, a survey boat owned by COSL. COSL (www.cosl.com.cn), a Hong Kong/Shanghai-listed company, is the leading oilfield services provider in the offshore China market. The site survey is planned to be completed over the next two weeks.
As announced in July 2007, Primeline and China National Offshore Oil Corp (CNOOC) (www.cnoocltd.com) have agreed on the locations and ranking of the next exploration wells in Block 25/34. The well designs having now been completed, the site survey is an important part of the preparation work for the proposed drilling programme. The Company plans to drill at least one well in the Lishui Gas Play and is currently in discussions with drilling contractors and CNOOC to secure a rig for that programme.
In the meantime, Primeline, with the assistance of CNOOC, has been working on the feasibility study of a stand alone development of its existing Lishui 36-1 gas discovery. Primeline and CNOOC are continuing their discussions with the Wenzhou Municipality Authority and the Zhejiang Provincial Government aiming to arrive at an agreement in principle for a take-or-pay gas sales contract on terms which will justify proceeding with the preparation and submission of an Overall Development Plan. If an early stand alone development of the existing discovery is feasible, it will significantly enhance the development of any future resources discovered in the nearby area and the rest of the Block.
About Primeline Energy Holdings Inc.
Primeline is an exploration 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. The Company has made a gas discovery within Block 25/34 and is currently evaluating the possible development of that discovery to supply natural gas to the rapidly expanding city of Wenzhou. A recently completed 3D survey has defined a number of high potential prospects for the Company’s immediate 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
Michael Borovec
Associate Account Manager
Phone: +1 416.868.1079 x.229
Fax: +1 416.868.6198
Email: michael@chfir.com
Cathy Hume
CEO
Phone: +1 416.868.1079 x.231
Fax: +1 416.868.6198
Email: cathy@chfir.com
Please visit the Company’s website at www.pehi.com. Should you wish to receive Company news via email, please email michael@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 Energy Holdings Inc. It is uncertain if further exploration will result in discovery of economic resources on any of the properties. Actual results may differ materially from those currently anticipated in such statements.
The TSX Venture Exchange has neither reviewed nor approved and takes no responsibility for the contents of this release.