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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: [email protected]

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: [email protected]
www.frontiermcg.com

Please visit the Company’s website at www.primelineenergy.com. Should you wish to receive Company news via email, please email [email protected] 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.