HONG KONG, CHINA--(Marketwired - July 30, 2015) -
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) announces that a resolution approving the Company's proposed acquisition of its affiliate Primeline Petroleum Corporation (the "PPC Acquisition") was passed by the Company's disinterested shareholders on a show of hands at today's 2015 Extraordinary General Meeting.
Based on proxies received before the meeting, management received proxies in favour from the holders of 19,784,936 shares, representing approximately 99.78% of the shares represented by proxy at the meeting and voted on the matter.
Completion of the PPC Acquisition is expected in the second week of August. Primeline will purchase the one issued and outstanding share of PPC and the right to be repaid the sharehold er's loan of RMB204,046,326 or CAD$41,650,607 as of March 31, 2015 owed by PPC to Primeline International Holdings Inc. ("PIHI"), a company wholly owned by the Company's Chairman, President and majority shareholder, Mr. Victor Hwang, by issuing 44,669,851 ordinary shares to PIHI.
Completion of the PPC Acquisition will satisfy an important condition precedent for the drawdown of the first tranche of the US$20 million principal amount of bonds (the "Bonds") from GEMS announced on June 5, 2015. Completion of the first drawdown will allow the Company to proceed to spud the first of two wells planned for Block 33/07 in August.
About Primeline Energy Holdings Inc.
Primeline is an exploration and production company focusing exclusively on China natural resources to become a major supplier of gas and oil to the East China market. Assuming completion of the PPC Acquisition, Primeline will have a 100% Contractor's interest in, and is the operator of, the petroleum contract with CNOOC for Block 33/07 (5,877sq km) and a 49% interest in the producing LS36-1 gas field in Block 25/34, together with CNOOC (51% interest and acting as operator for the field development and production). Both blocks are located in the East China Sea.
LS36-1 has been in production since July 2014. 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
Please visit the Company's website at www.pehi.com. Should you wish to receive Company news via email, please email nadine@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 Primeline's expectation that it will satisfy the conditions precedent to the issue of the Bonds, and the timing of completion of the PPC Acquisition. Although these statements are based on assumptions management believes to be reasonable, actual results may vary from those anticipated in such statements. Primeline may be unable to satisfy all ther conditions precedent to the issue of the Bonds. Regulatory approvals may not be received for all or some of the transactions. Completionof the PPC Acquisition may be delayed for various reasons. If Primeline is unable to complete the transactions, it may have to curtail or cease its drilling operations. Exploration for oil and gas is subject to the inherent risk that it will not result in a commercial discovery.
Neither the 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.