Vicky-1 Drilling Financing Arranged
VANCOUVER, BC June 19th, 1997 —- Primeline Energy Holdings Inc. (“PEHI”), a Vancouver Stock Exchange (“VSE”) listed company, today announced that it had completed arrangements to finance the drilling of the Vicky-1 exploration well in its concession in block 32/32, East China Sea, offshore China. The financing is a C$5 million private share placement to Primeline International Holdings, owned by PEHI’s controlling shareholder, Mr Victor Hwang.
The subscription agreement calls for the placement of 7,246,376 shares priced at yesterday’s last VSE trading price of $0.69 per share. The share placement represents 46.19% of PEHI’s currently issued and outstanding common shares. After the placement, Primeline International will own or control 21,271,205 of PEHI’s shares, representing 92.74% of PEHI’s 22,935,894 issued shares. The placement is subject to VSE and shareholder approval at an extraordinary general meeting of shareholders scheduled for July 1997, with the record date of June 20, 1997.
Proceeds will be used to pay PEHI’s 75% share of Vicky-1’s drilling costs. Drilling is scheduled to commence around July 10 and take about 50 days to complete. Preliminary drilling results are expected in mid-August.
PEHI is the only exchange listed oil and gas company focused on upstream opportunities in China.
“Peter C. Kelty”
Peter C. Kelty, Director
Primeline Energy Holdings Inc.
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.