Primeline Energy Holdings Inc. profile
Primeline Energy Holdings Inc. (TSXV: PEH) is a currently producing, 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, have proceeded with the development of the LS36-1 gas field in the East China Sea, which was on-stream in mid-2014.
Primeline has also secured a Petroleum Contract for Block 33/07 with CNOOC. The new contract is to replace the previous exploration area (Block 25/34). In December 2013, Primeline entered into a contract with China Oilfields Services Ltd. for the acquisition of 3D Seismic data over an area of 600 sq km to the north of and adjacent to the area previously surveyed in 2007. This survey is now complete, and is expected to be ready for interpretation with a view to drilling 2 exploration wells by the end of October 2015.
- Gas supplied at approximately $14.50 mcf (USD)
- Planned substantial exploration activity under Petroleum Contract 33/07, aiming to monetize a further 1.4TCF of resources – worth $3 billion at current prices
- Two additional exploration wells to be drilled in 2015
- Strong management and proven technical team with significant international and Chinese energy expertise
China’s Gas & Oil Markets
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.
Parkview House, 14 South Audley Street London , United KingdomW1K 1HN
Tel: +44 207 499 888
Fax: +44 207 499 228
Investor Relations Contacts
Primeline Energy Holdings Inc.+44.560.272.086
Content last updated on : Apr 07, 2016