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Primeline Energy Holdings Inc V.PEH


Primary Symbol: V.PEH.H

Primeline Energy Holdings Inc. (Primeline) is a Hong Kong-based company engaged in the exploration of oil and gas properties located in China. The Company owns exploration and development rights in the East China Sea pursuant to two Petroleum Contracts, one in relation to Block 25/34 (Petroleum Contract 25/34) and one in relation to Block 33/07 (Petroleum Contract 33/07). The Company has approximately 36.75% interest in the producing LS36-1 gas field in Block 25/34 which comprises an offshore area of approximately 84.7 square kilometers. Primeline is the operator of the Petroleum Contract with China National Offshore Oil Corporation (CNOOC) for Block 33/07. Block 33/07 covers an offshore area of approximately 5,877 square kilometers (1.45 million acres), enclosing Block 25/34. The Company's subsidiaries include Primeline Energy China Limited (PECL) and Primeline Energy Operations International Limited (PEOIL).


TSXV:PEH.H - Post by User

Comment by funkyschnitzelon Jul 06, 2016 5:00pm
172 Views
Post# 25029234

RE:RE:Primeline and Husky against CNOOC

RE:RE:Primeline and Husky against CNOOCI'm running on the assumption that this is merely a business practice, and not as antagonistic as it might seem.  CNOOC has conflicting interests here, they have assets and investments on both sides of this equation.

Zheijiang Gas wasn't paying the bills.  PEH therefore can't pay their own bills.  CNOOC, given the conflict of interest, is in a difficult spot in terms of pressuring ZG.  PEH tried to go after Zhejiang Gas directly, but wasn't able to.  So they've gone aftertheir partner to force CNOOC to take action against ZG.  I don't think anyone in this scenario is surprised or offended.  It's just business.  Now CNOOC will have an excuse to apply pressure to ZG ("We don't really want to do this, but Primeline is MAKING us do it!")

The biggest questions are whether they will get paid and how much (ie: how this legal action falls out) and, perhaps more importantly, whether PEH can keep afloat, cover payments and/or come to terms with the banks to whom they have liabilities due.

It's easy enough to look at this and think that the Canadian company is going to get screwed by China, but keep in mind, the majority of the company is owned not by Canadians, but by a very wealthy and well connected Hong Kong businessman.
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