Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that trial production of gas from the LS36-1 gas field has now commenced.
As previously announced, with the completion of the last section of the gas sales pipeline and connection to the provincial gas grid, the LS36-1 gas field development (“Development”) was completed on 1st July 2014. Since then CNOOC Limited (“CNOOC”), as operator, and the downstream buyer, Zhejiang Provincial Gas Development Co. (“Zhejiang Gas”), commenced joint commissioning of the upstream and downstream facilities and trial gas production from the LS36-1 gas field commenced on July 16, 2014.
The LS36-1 gas field is located in 84m of water in the East China Sea about 150km from the major city Wenzhou. The field was discovered by Primeline and has been developed by CNOOC, as operator, the Company and Primeline Petroleum Corp. The Development comprises a production platform with four production wells, a subsea pipeline and an onshore processing terminal. The gas is being sold to Zhejiang Gas, the owner and operator of the Zhejiang Provincial Gas Grid. Formal commencement of production will be announced after the completion of joint commissioning and the smooth operation of the equipment in this trial period of production.
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 (5,877sq 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 Corporation. 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
CONTACT:
| PRIMELINE ENERGY HOLDINGS INC. Dr. Ming Wang CEO | CHF INVESTOR RELATIONS Robin Cook, Senior Account Manager | VSA CAPITAL LIMITED Andrew Raca, Head of Corporate Finance |
| Phone: +44 207.499.8888 | Phone: +1 416.868.1079 ext 228 | Phone: +44 203 005 5000 |
| Fax: +44 207.499.2288 | Fax: +1 416.868.6198 | Email: ARaca@vsacapital.com |
| Toll Free: 1.877.818.0688 | Email: robin@chfir.com | |
| Email: IR@pehi.com | |
Please visit the Company’s website at www.pehi.com. should you wish to receive Company news via email, please email robin@chfir.com and specify “Primeline Energy” in the subject line.
Forward-Looking Statements
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 the formal commencement of gas production. They are based on assumptions that the joint commissioning of the production facility will be completed on a timely basis, that there are no problems with the upstream and downstream infrastructure equipment and that production will proceed in accordance with the gas sale contract. The joint commissioning may not be completed on a timely basis, they may be equipment problems and gas production may be interrupted or may not proceed in accordance with the gas sale contract and finance may not be available for further exploration. 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.