HONG KONG, CHINA--(Marketwired - Aug. 29, 2016) -
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Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH) today announced that it has filed its interim unaudited financial statements for the quarter ended June 30, 2016 and related management discussion and analysis. Copies of these documents may be obtained at www.SEDAR.com under Primeline's profile or on Primeline's website at www.pehi.com.
During the quarter ending June 30, 2016, the Company, together with its partner CNOOC, has completed the following work in Block 25/34:
- delivered approximately 30.15 million cubic metres (mmcm) natural gas from LS36-1 gas field to Zhejiang Gas under the Gas Sales Contract. Volumes were 47% lower than in the previous quarter and reflected 40 days of shut down for maintenance of the downstream facilities. Production resumed on July 21, 2016 and subsequent volumes have been in line with planned levels; and
- drilled and put into production well LS36-1-A4M, an additional production well which is part of the development programme for the LS36-1 gas field.
Separately in Block 33/07, the Company has:
- entered into the second phase of exploration under Petroleum Contract 33/07 with a 100% working interest.
Primeline has substantial amounts outstanding as a result of the disputes with Zhejiang Gas and CNOOC on various issues relating to the Gas Sales Contract and Petroleum Contract, the matter of the current arbitration procedures. The Company will continue to seek a negotiated resolution of the disputes but, if the matters go to the completion of arbitration, the Company and its legal counsel believe it would have a very high probability of having the Gas Sales Contract terms upheld and the Petroleum Contract protected. The Company expects that the disputes with Zhejiang Gas and CNOOC will be resolved to the Company's satisfaction and that with a gradually improving economic climate it will be possible to leverage the production base of the Company to finance continued exploration and provide a base for future expansion.
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 (4,397sq 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.
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. Although these statements are based on assumptions management believes to be reasonable, actual results may vary from those anticipated in such statements. If the disputes with Zhejiang Gas and CNOOC are not resolved to Primeline's satisfaction, or if Zhejiang Gas secures a lower price for gas sold thereunder or does not comply with the take or pay payment obligations, and if CNOOC and its subsidiary fail to fulfil their obligations and duties as operator and sale agents for Primeline in LS36-1, the Company's revenues or cash flow may be lower than anticipated and there may be a serious consequent adverse effect on the Company's debt repayment obligations under the Syndicate Facility. Exploration for oil and gas is subject to the inherent risk that it will not result in a commercial discovery.
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.