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Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that Primeline has entered into a further agreement with Victor Yiou-Hwa Hwang, its President, Chairman and largest shareholder, in relation to an additional working capital facility. Previously Mr. Hwang granted Primeline a loan facility of up to US$4,000,000 for working capital purposes. The amount drawndown to date under that working capital facility is US$3,205,128 so that US$794,872 remains available, and it has recently been agreed that the period during which such facility is available to be drawn against should be extended to 30th November 2012 and that the amount drawndown should be repayable on written demand at any time after 30th April 2013. In order to provide additional working capital through to 31st March 2013, an additional working capital facility has now been agreed. The amount available under this additional facility is US$1,650,000 which is available for drawdown at any time prior to 31st March 2013. The amount drawndown is repayable at any time after 31st July 2014 and is interest free. Primeline is investigating options for generating funds to repay the working capital facilities and expects to make an announcement about repayment in due course.
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 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 Corp. (“PPC”). Shares of the Company 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
Phone: +44 207.499.8888
Fax: +44 207.499.2288
Toll Free: 1.877.818.0688
CHF INVESTOR RELATIONS
Senior Account Manager
Phone: +1 416.868.1079 ext. 228
Fax: +1 416.868.6198
Please visit the Company’s website at www.pehi.com. Should you wish to receive Company news via email, please email firstname.lastname@example.org and specify “Primeline Energy” in the subject line.
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 Primeline’s expectation that it will be able to conclude arrangements to generate funds to repay the Loan. Actual results may vary from those anticipated in such statements. Such arrangements may not be entered into on the terms expected or at all. If not, Primeline may be unable to repay the Loan. 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.