HONG KONG, HONG KONG--(Marketwired - April 5, 2013) -
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Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE: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 loan facilities of up to US$5,650,000 for working capital purposes which facilities are fully drawn down, and are repayable on demand at any time after April 30, 2014 (in respect of the facility for US$4,000,000) and July 31, 2014 (in respect of the facility of US$1,650,000). In order to provide additional working capital through to 31st March 2014, an additional working capital facility has now been agreed. The amount available under this additional facility is US$1,000,000 which is available for drawdown at any time prior to 31st March 2014. The amount drawndown under the new facility is repayable on written demand at any time after 31st July 2015 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.
In the meantime, the development of the LS36-1 gas field continues to progress smoothly with first gas due in the second half of 2013 as scheduled.
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 (5.877 sq 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 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.
Ming Wang, Chief Executive Officer
Please visit the Company's website at www.pehi.com. Should you wish to receive Company news via email, please email email@example.com 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 working capital facilities. 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 working capital facilities. In such event, Primeline may have to curtail or cease its operations. 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.