Primeline Energy Holdings Inc.
Parkview House, 14 South Audley Street
London, United Kingdom, W1K 1HN
Tel: +44 207 499 8888 Fax: +44 207 499 2288
Web: http://www.primelineenergy.com
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| Exchange | TSXV |
| Exchange Symbol | PEH |
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Share Structure as of: November 11, 2011
Issued & Outstanding: 94 million
Fully Diluted Shares: 100 million
Andrew Biggs
Senior Vice President and General Counsel
Primline Energy Holdings Inc
+44(0)20 7499 8888
IR@PEHI.com
Robin Cook
Senior Account Manager
CHF Investor Relations
+1 416.868.1079 x 228
robin@chfir.com
Content last updated on 01.06.12
Primeline Energy Holdings Inc. (TSXV: PEH) is an independent energy company focused exclusively on upstream oil and gas opportunities to become a major supplier of gas and oil to the East China market.
Primeline and its partner, CNOOC, a major player in China’s oil and gas industry, are proceeding with the development of the LS36-1 gas field in the East China Sea, which is scheduled to be on-stream in mid-2013.
Primeline has also recently secured a new Petroleum Contract for Block 33/07 with CNOOC. The new contract is to replace the previous exploration area (Block 25/34). Block 33/07 comprises an offshore exploration area of 5,877 km² in the East China Sea, surrounding the development area for the LS36-1 gas field.
TAKE A LOOK AT THE PRIMELINE ENERGY VIDEO CLIP WITH CEO MING WANG HERE IN .wmv FORMAT or HERE IN .mov QUICKTIME FORMAT.
- Favourable gas market in China with prices approaching Far East LNG price
- 'Take or pay' gas sale agreement entered into with a provincial gas distribution company for the sale of gas from the LS36-1 gas field
- CNOOC has assumed operatorship for the LS36-1 development and backed-in for a 51% working interest in LS36-1. CNOOC brings deep technical and operating experience in developing offshore fields
- CNOOC is proceeding with and funding development work including engineering design and procurement and fabrication has now commenced. Development is currently on schedule with first gas due in mid-2013
- Primeline has secured a loan memorandum for development finance from a major Chinese bank. The loan will be submitted to the bank’s credit committee for final approval after government approval of the development application for which is expected soon
- Future discoveries under the new contract will enjoy the right to free use of the production facilities to be built for the LS36-1 gas field
- New Petroleum Contract covering the surrounding prospective area provides future vast exploration inventory
- Primeline has a very supportive major shareholder, Mr. Victor Hwang
The LS36-1 gas field has two successful wells that flowed 9.8 and 12.6 MMcfd in drill stem tests (DST). The gas field is in 85 metres of water with uncomplicated pressure and reservoir conditions. An independent resource estimate by McDaniel concluded that LS36-1 has a probable reserve of 119 bcf of natural gas
The gas sale framework agreement has been signed with Zhejiang Provincial Natural Gas Development Co. Primeline and CNOOC have completed the Environmental Impact Assessment (EIA) and Overall Development Program (ODP) for development of the LS36-1 gas field. The EIA has been submitted to the appropriate authorities and approval is expected shortly. The ODP is currently being finalized for submission to the Government. In the meantime, CNOOC is proceeding with engineering design, procurement and fabrication for the development.
The current plan of the development envisions production from LS36-1 in 2013 but Primeline is moving forward to explore nearby prospects for resources to be potentially tied into LS36-1 in the future under a rolling development strategy.
Primeline has 737 km 3D seismic data over the gas field and nearby area. Interpretation of the data has confirmed the existence of channel and canyon systems. Primeline has mapped several analogous prospects and leads that have similar geological and geophysical characteristics to the LS36-1 gas field, referred to as the Lishui Gas Play. This is the main focus of Primeline's current exploration programme.
The Lishui Gas Play represents only 15% of the 5,877 km² Block 33/07 and significant hydrocarbon potential has been identified in the remainder of the Block.
Service Ship at Lishui 36-1 platform
China’s dynamic economic growth in the past 30 years has created the world’s 2nd largest energy consumer. China’s energy needs are presently met mostly by coal, oil (40% of which is imported) and, minimally, by gas. Gas utilization has become a focus of Chinese government energy policy, which favours an enhanced role for natural gas.
Historically, Chinese gas prices have been low, based on domestic production. However, increased demand is now met by imported gas by LNG and long distance pipelines and, as a result, prices in East China are moving towards the Far East LNG price.
Primeline will benefit from the rapidly expanding gas infrastructure and maturing market conditions in China.
Victor Hwang, Chairman and President - Executive Director of Hong Kong Parkview Group Ltd. and President of Parkview International London PLC. Mr. Hwang has significant business and political relationships in China.
Dr. Ming Wang, CEO - Dr. Wang has a PhD in Geology from Imperial College, London, and extensive knowledge and contacts within the Chinese petroleum industry.
Brian Chan, Director and CFO - Mr. Chan has extensive experience in international banking and commerce.
Andrew Biggs, Senior Vice President and General Counsel - Mr. Biggs was a partner of international law firm Richards Butler where he worked primarily on Hong Kong/Asian M&A and corporate finance transactions. He has worked with V. Hwang for 14 years.Alan Soulsby, Technical Director - Mr. Soulsby has over 30 years oil and gas experience following a Masters degree in Geophysics from Pembroke College, Oxford, UK.
Alan Johnson, Independent Director - Manager of Oil Projects for Glencore International AG.
Peter Kelty, Independent Director - a Certified Public Accountant and a member of the Illinois State Bar. Mr. Kelty has extensive experience in restructuring and financing major Asian regional corporations as well as advisory work for European and US multinationals.