HONG KONG - May 5, 2016 - Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announces that it has agreed with China National Offshore Oil Corp. (“CNOOC”) that it will enter the next and second phase of exploration commitment under the Petroleum Contract for Block 33/07 (“Petroleum Contract”).
This decision follows the completion of Primeline’s evaluation of the 2015 programme which saw a cost effective and smooth drilling operation of two exploration wells - LS23-1-1 and LS30-3-1. Both wells encountered very good sandstone reservoirs as predicted and gas shows, but were not commercial.
By entering into phase two, Primeline has agreed to relinquish 25% of the contract area under the Petroleum Contract. The contract area for Block 33/07 is 4,397 sq km.
Block 33/07 surrounds Block 25/34 where the LS36-1 gasfield is located. Any discovery from Block 33/07 can enjoy the benefit of LS 36-1 production facility which has been in production since July 2014.
Further details on upcoming exploration plans will be provided in due course.
About Primeline Energy Holdings Inc.
Primeline is an exploration and production company focusing exclusively on China natural resources to become a major supplier of gas and oil to the East China market. Primeline has a 100% Contractor’s interest in, and is the operator of, the petroleum contract with CNOOC for Block 33/07 (originally 5,877 sq km, now 4.397 sq km) and a 49% interest in the producing LS36-1 gas field in Block 25/34, together with CNOOC (51% interest and acting as Operator). Both blocks are located in the East China Sea. LS36-1 has been in production since July 2014. 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.||CHF Investor Relations||VSA CAPITAL LIMITED|
|Dr. Ming Wang|
Phone: +44 207.499.8888
Fax: +44 207.499.2288
Toll Free: +1 877.818.0688
Toll Free: +1.877.838.1079 x231
Head of Corporate Finance
Phone : +44 203.005.5000
Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Primeline.
Neither the 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.