Vicky-1 Testing Programme Results
VANCOUVER, BC September 30th, 1997 —- Primeline Energy Holdings Inc. (“PEHI”), a Vancouver Stock Exchange (“VSE”) listed company, today announced that it has successfully tested for hydrocarbons in its first well in the East China Sea.
Primeline spudded the Vicky-1 well on July 25th, 1997 in block 32/32 in the Lishui Sag of the East China Sea Basin. The well reached a total depth of 3,300m, 100m deeper than originally planned on September 21st, 1997. Currently the company is conducting a testing programme. Initial results have shown a significant gas flow and the testing is ongoing. Final results and the degree of commerciality will be announced shortly.
Primeline holds a 75% interest in the petroleum contract for block 32/32 which is approximately 6,000 sq. km in size. Primeline Petroleum Company (PPC), the parent company of PEHI, holds the remaining 25%.
The block was initially acquired by PPC during the Chinese 4th round offshore bidding in 1993 when China National Offshore Oil Corporation signed 18 Petroleum Contracts and Agreements with ten international oil companies. Since then, major companies including Texaco, Shell and Chevron have drilled 14 wildcat wells in the East China Sea.
PEHI’s Vicky-1 well is the 15th well and the first wildcat that has conducted testing encountering a significant hydrocarbon flow. This discovery is made in only one of the 11 structure taps currently identified in block 32/32.
Victor Hwang, the Chairman and CEO of PEHI said, “We are highly gratified that our faith in the potential of the East China Sea has been vindicated. This is a significant discovery, especially in light of the dry holes that have preceded it in the area”.
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.