HONG KONG, CHINA--(Marketwired - Aug. 29, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRES SERVICES, OR DISSEMINATION IN THE UNITED STATES.
Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH) today announced that it has filed its interim unaudited financial statements for the quarter ended June 30, 2016 and related management discussion and analysis. Copies of these documents may be obtained at www.SEDAR.com under Primeline's profile or on Primeline's website at www.pehi.com.
During the quarter ending June 30, 2016, the Company, together with its partner CNOOC, has completed the following work in Block 25/34:
- delivered approximately 30.15 million cubic metres (mmcm) natural gas from LS36-1 gas field to Zhejiang Gas under the Gas Sales Contract. Volumes were 47% lower than in the previous quarter and reflected 40 days of shut down for maintenance of the downstream facilities. Production resumed on July 21, 2016 and subsequent volumes have been in line with planned levels; and
- drilled and put into production well LS36-1-A4M, an additional production well which is part of the development programme for the LS36-1 gas field.
Separately in Block 33/07, the Company has:
- entered into the second phase of exploration under Petroleum Contract 33/07 with a 100% working interest.
Primeline has substantial amounts outstanding as a result of the disputes with Zhejiang Gas and CNOOC on various issues relating to the Gas Sales Contract and Petroleum Contract, the matter of the current arbitration procedures. The Company will continue to seek a negotiated resolution of the disputes but, if the matters go to the completion of arbitration, the Company and its legal counsel believe it would have a very high probability of having the Gas Sales Contract terms upheld and the Petroleum Contract protected. The Company expects that the disputes with Zhejiang Gas and CNOOC will be resolved to the Company's satisfaction and that with a gradually improving economic climate it will be possible to leverage the production base of the Company to finance continued exploration and provide a base for future expansion.