Primeline Energy Holdings Inc.: LS36-1 Gas Field Development Receives Final Government Approval

Primeline Energy Holdings Inc.: LS36-1 Gas Field Development Receives Final 
Government Approval 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Primeline Energy Holdings Inc. 
TSX VENTURE SYMBOL:  PEH 
MAY 16, 2014 
Primeline Energy Holdings Inc.: LS36-1 Gas Field Development Receives Final
Government Approval 
HONG KONG, CHINA--(Marketwired - May 16, 2014) -  
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES, OR DISSEMINATION IN THE UNITED
STATES 
Primeline Energy Holdings Inc. ("Primeline" or the
"Company") (TSX VENTURE:PEH) today announced that the overall
development programme for its LS36-1 gas field development
("Development") has received final approval from the Chinese
Government. 
China National Offshore Oil Corporation (CNOOC) notified Primeline today that
the National Development and Reform Commission (NDRC) has approved the
Development. This approval allows the project Operator, CNOOC, which holds a
51% interest in the Development, to finalise plans for the commencement of gas
production. During the last 3 years CNOOC has completed the majority of the
development work, including the production platform, development wells, subsea
pipeline, gas processing terminal and the offshore section of the gas sales
pipeline. The remaining development work includes the laying of the last 3 km
of the gas sales pipeline, connection to the provincial gas grid and final
commissioning. Construction of the final 3 km of gas sales pipeline commenced
in April 2014 and is expected to be completed in June. CNOOC currently
envisages that the gas production will commence in Q3 2014, subject to final
coordination with the downstream buyer, Zhejiang Provincial Gas Development Co.
A separate announcement will be made when the first gas date is fixed and gas
production commences.  
This approval also allows Primeline and Primeline Petroleum Corporation (PPC),
who hold 36.75% and 12.25% interests respectively in the Development, to
finalise the financing arrangements for their share of the costs of the
Development. Under agreements entered into with CNOOC in relation to the
Development, Primeline and PPC would have no obligation to fund cash calls in
relation to their share of the costs of the Development until 3 months from the
date of the government approval. Primeline and PPC have previously entered into
a non-binding Loan Memorandum with China Development Bank ("CDB")
relating to funding for their share of the cost of the Development, which
received an in principle approval from CDB's Credit Committee in January
2013, subject to final approval of the NDRC and finalisation of the loan
documentation and security arrangements. Primeline and PPC are negotiating and
finalising the formal loan agreement and security arrangements with CDB. A
separate announcement will be made when the finance arrangements have been
finalised. 
About Primeline Energy Holdings Inc. 
Primeline is an exploration and development company focusing exclusively on
China resources to become a major supplier of gas and oil to the East China
market. Primeline has a 75% Contractor's interest in and is the operator
of the petroleum contract with CNOOC for Block 33/07 (5,877sq km) in the East
China Sea and a 36.75% interest in the LS36-1 gas field in Block 25/34 which is
being developed by CNOOC Limited (acting as Operator for the development)
together with Primeline and Primeline Petroleum Corporation. 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 bren@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 the expected date for
completion of the final 3Km of gas sales pipeline and the expected times for
commencement of gas production. They are based on assumptions that the
construction of the gas sales pipeline and joint commissioning of the
production facility will be completed on a timely basis, and that funding
arrangements for the Development can be completed. The construction of the gas
sales pipeline and the joint commissioning may not be completed on a timely
basis, costs may exceed those expected and it may not be possible to complete
funding arrangements. Exploration for oil and gas is subject to the inherent
risk that it will not result in a commercial discovery. 
Neither 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. 
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FOR FURTHER INFORMATION PLEASE CONTACT: 
Primeline Energy Holdings Inc.
Dr. Ming Wang
CEO
+44 207.499.8888 or Toll Free: 1.877.818.0688
+44 207.499.2288
IR@pehi.com
or
CHF Investor Relations
Robin Cook
Senior Account Manager
+1 416.868.1079 ext 228
+1 416.868.6198
robin@chfir.com
or
VSA Capital Limited
Andrew Raca
Head of Corporate Finance
+44 203 005 5000
ARaca@vsacapital.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  OEX 
-0-
-0- May/16/2014 14:11 GMT
 
 
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