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HONG KONG, Sept. 26, 2018 (GLOBE NEWSWIRE) -- Primeline Energy Holdings
Inc. (“Primeline” or the “Company”), today announced the following update on its
arbitration proceedings (“CNOOC Arbitration”) against China National Offshore Oil Corp (“CNOOC”) and CNOOC China Limited (“CCL”).
As previously announced Primeline commenced the CNOOC Arbitration under the dispute resolution provisions of
Petroleum Contract 25/34 in accordance with the UNCITRAL Arbitration Rules 1976. The tribunal (comprised of three arbitrators) was
formed on August 30, 2016 with the seat of arbitration being agreed to be in Singapore. Primeline has claimed in respect of CCL’s
mismanagement as operator of the LS36-1 gas field, resulting in delay in the commencement of production of LS36-1 gas field from
2013 to 2014 leading to loss of revenue, increased cost and the project falling below its design level; and in respect of CCL’s
breach of good faith and wrongful conduct as Primeline’s agent in dealing with Zhejiang Gas and managing the Gas Sales Contract for
LS 36-1; and against CNOOC as guarantor of CCL.
The final hearing of the CNOOC Arbitration took place in Singapore between September 10-20, 2018. The parties
are now required to submit final written submissions following which the tribunal will make its decision. It is anticipated that
the tribunal will take several months to finalise and deliver its decision.
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.
Signed “Ming Wang”
Chief Executive Officer
Contact:
PRIMELINE ENERGY HOLDINGS INC.
Dr. Ming Wang, CEO
PH: +44 207.499.8888
Fax: +44 207.499.2288
Toll Free: 1.877.818.0688
E-Mail: IR@pehi.com
FronTier Merchant Capital Group
Robin Cook
1411-1 King Street West
Toronto, ON M5H 1A1
PH: (416) 809-1738
FAX: (866) 749-0447
E-Mail: robin@frontiermcg.com
www.frontiermcg.com
Please visit the Company’s website at www.primelineenergy.com. Should you wish to receive Company news via email, please
email robin@frontiermcg.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. One such assumption is that Primeline
will be successful in the CNOOC Arbitration. Primeline may not be successful in the CNOOC Arbitration. If it is successful,
Primeline may not be able to enforce the award of the arbitral tribunal. In any of these events, Primeline’s banking Syndicate may
demand immediate repayment of all amounts owed under the project facility. This would likely result in Primeline’s insolvency,
and seizure of its assets. 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.
