Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that its contractor, China Oilfield Services Ltd. (COSL), has completed the 3D seismic survey of 600 sq. km in Block 33/07, East China Sea announced by Primeline on March 31, 2014.
The survey commenced on March 31 and as the weather and sea conditions were good, COSL was able to complete the survey ahead of the planned schedule and the final line was shot on May 2, 2014. The data will now be shipped to COSL’s processing center and it is estimated that processing will commence around mid-May. The processing will take about 4-5 months and will allow Primeline to merge the new data with the existing 3D seismic data for interpretation in Q3 2014.
Primeline has existing 3D seismic data covering the LS36-1 gas field development and its immediately surrounding prospects. The 600 sq. km area surveyed by COSL is located to the north of and adjacent to the existing 3D seismic data area. The new survey is intended to provide better definition of the prospects and leads that have previously been identified in the survey area using 2D data, in order to generate more drillable prospects.
In the meantime, the LS36-1 gas field development is progressing well with CNOOC Limited, as operator, working on the final connection to allow the production to commence soon. Based on current information from CNOOC, the target for first gas remains sometime in Q3 2014.
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% Contractor’s interest in and is the operator of the petroleum contract with CNOOC for Block 33/07 (5,877sq km) in the East China Sea and a 36.75% interest in the LS36-1 gas field in Block 25/34 which is being developed by CNOOC Limited (acting as Operator for the development) together with Primeline and Primeline Petroleum Corporation. Shares of Primeline are listed for trading on the TSX Venture Exchange under the symbol PEH.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Chief Executive Officer
|PRIMELINE ENERGY HOLDINGS INC. |
Dr. Ming Wang
|CHF INVESTOR RELATIONS |
Senior Account Manager
|VSA CAPITAL LIMITED |
Head of Corporate Finance
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|Phone: +44 207.499.8888||Phone: +1 416.868.1079 ext 228||Phone: +44 203 005 5000|
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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 time it will take to process the 3D seismic just acquired by COSL and the expected date for first gas. They are based on assumptions that the processing which is part of the contract with COSL will be completed on a timely basis and within the expected cost, and that the LS 36-1 gas field development is completed according to CNOOC’s present timetable. The contract with COSL may not be completed on a timely basis, costs may exceed those expected and it may not be possible to complete funding arrangements. CNOOC’s timetable for the development may be delayed. Exploration for oil and gas is subject to the inherent risk that it will not result in a commercial discovery.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.