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Hong Kong, August 11, 2021 - Primeline Energy Holdings Inc. (“Primeline” or the “Company”) announces that it has received notice of the occurrence of an event of default under the loan facility from the syndicate of banks (the “Syndicate”) which provided finance for Primeline’s share of the development cost of the LS 36-1 gas field, and of acceleration and demand for repayment of the principal amount of the loan of US $152,761,912.70, together with interest and penalties. As previously disclosed, production at LS 36-1 has been shut down, and Primeline has no source of revenue with which to repay the loan. The Syndicate has yet to provide notification to Primeline with regard to enforcement of security for the loan.
Primeline confirms that, other than as disclosed in prior press releases, there have been no material business developments since its press release of August 21, 2020 and the filing on February 13, 2020 of the Company’s latest interim financial report for the period ended December 31, 2019.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Signed “Andrew Biggs”
Chief Executive Officer
Primeline Energy Holding Inc.
Andrew Biggs, CEO
PH: +44 207.499.8888
Fax: +44 560 372 5179
Toll Free: 1.877.818.0688
Please visit the Company’s website at www.primelineenergy.com.
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 ability to continue operations. Although these statements are based on assumptions management believes to be reasonable, actual results may vary from those anticipated in such statements. CCL has shut down production at the LS 36-1 Gas Field, and suspended performance of its obligations under the Petroleum Contract, relating to LS 36-1. Primeline therefore has no potential source of future revenue, and may be unable to continue operations. The syndicate of banks which provided finance for Primeline’s share of the LS 36-1 development has given notice of default and acceleration of repayment of the loan, and may realize on its security interest over Primeline’s interest in LS 36-1, and if it does that will result in the seizure of all of Primeline’s material assets, in which event Primeline will be unable to continue operations. Primeline may be unsuccessful in its application to set aside the award previously made in its arbitration with CNOOC and CCL, and if it is Primeline will be unable to continue operations. Primeline assumes no obligation to update forward-looking information, except as required by law. 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.