HONG KONG, CHINA--(Marketwired - March 24, 2017) -
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 now received the full payment due under the recently agreed settlement of the dispute with Zhejiang Natural
Gas Development Company Ltd. ("Zhejiang Gas") in relation to the Gas Sales Contract for LS36-1
("GSC").
As previously announced, on March 1, 2017, settlement agreements were signed between Primeline and CNOOC China Ltd ("CCL") and
CCL with Zhejiang Gas relating to the dispute Primeline had with Zhejiang Gas with regard to the GSC. Following the execution of
the agreements, Zhejiang Gas paid the overdue amount in full to CCL and Primeline, applied to withdraw the arbitration
proceedings against Zhejiang Gas before the China International Economic and Trade Arbitration Commission ("CIETAC"). CIETAC
formally confirmed the termination of the arbitration proceedings on March 21, 2017 and Primeline has received today RMB 256
million (CAD$49 million) net of VAT for its share of all outstanding, unpaid or partly paid amounts due to the end of 2016
including take-or-pay payments for 2015 and 2016; plus a sum of RMB12m (CAD$2.3m) relating to the difference between the agreed
price and the price previously paid from January 1 to February 28, 2017. These payments represent the full and final settlement
amount due in settlement of the dispute with Zhejiang Gas.
The production rate is being maintained at the design level of circa 25mmcfpd and the payment process is now normalised.
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. Primeline has a 100% Contractor's interest in, and is the operator of, the petroleum
contract with CNOOC for Block 33/07 (4,397sq 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). Both blocks are 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 john@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. Although these statements are based on assumptions management believes to be
reasonable, actual results may vary from those anticipated in such statements. 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.