Primeline Energy Holdings Inc. July 2015 Primeline Corporate Presentation July 2015 1
Building a leading Pan Asia/Pacific oil and gas company 1. TSX-V listed E&P China gas play with clean balance sheet and strong management team. Year ended Mar 31 2015 cash flow from LS36-1 of CAD53 million. Expected EBITDA of CAD80…
Structure and assets PEH has announced plans to acquire its affiliate Primeline Petroleum Corporation (PPC). PPC is 100% controlled by Victor Hwang, PEH Chairman/majority shareholder. The transaction is expected to complete on July…
East China gas market - High growth, high price Chinas dynamic economic growth in the past 25 years has created the worlds 2nd largest energy market. Chinas current energy needs are met mostly by coal and oil (58% of the latter is…
Access to Zhejiang gas grid LS36-1 is a strategic gas field close to Zhejiang Province - population of 50 Ningbo LNG million 4th largest economy in China. Current Zhejiang gas grid usage is at 6.6 bcmpa (has doubled in just 4…
East China Sea becoming a significant gas production basin Proven petroleum province. New E&P focus in Xihu Trough (Basin) in northern East China Sea, anchored on two existing fields: Pinghu Field: onstream in 1998, 386 km 14…
LS36-1: Infrastructure hub is completed Platform facility 4 development wells Subsea pipeline: 126.9km to onshore terminal Sale gas pipeline: 32 km - to grid Primeline Corporate Presentation July 2015 7
Valuation has not yet reflected impressive operational progress Production started Jacket ODP installed approved Dev. Fabrication Drilling completed Dev. Agreement Primeline Corporate Presentation July 2015 8
Strategy leverages infrastructure hub to monetize upside Development completed for LS36-1 gas field, secured market access and Newly acquired 600 km2 of 3D built regional seismic production infrastructure hub. Farm-out underway…
High margin resource additions from both our blocks 2015+ plan to monetise 1TCF plus of high margin hydrocarbon upside in the field and in our 5,877 km2 exploration concession. Substantial possible reserves and prospective resources…
Prospective resources of 1.4TCF (McDaniel) Prospective Resources - Natural Gas Risked (2) Prospective Resources - Unrisked (1) Chance of Resources Success Prospect Low Medium Mean High Mean MMcf MMcf MMcf MMcf MMcf % LS36-1…
Additional resources in lower zones Current Producers are in M1-1 an M1-2 sands. Additional gas in other sands and in lower tight reservoirs. Cross-section of LS36-1 M11 M12 M2 M31 M32 L1 L2 Primeline Corporate…
Reserve additions via Phase 2 drilling from platform Existing wells shown in black LS36-1 M11 Sth well LS36-1 M10 well 30-8 Exploration Prospect Wells LS36-1 M2 & M3 LS36-1 M11 SW well wells 8 locations and well…
M10 untested sand Designed as deviated well targeted to thick M10 section. Well penetrates entire M10 stratigraphic section. M10 GIIP calculates with Top M10 3D Horizon Prospect Range of: Shaded to show M10 Isochore P90: 6.8…
LS36-1 field and nearby prospects New 600 sq. km 3D seismic in 2014 expanded the coverage in the gas play acquisition and processing completed and; interpretation in progress. Additional 3D seismic may be required for the…
Lishui gas play tiebacks 2006 3D seismic area LS30-3-1 LS30-3 LS29-2 LS36-1 Platform LS35-1 LS35-3-1 Discovery LS35-3 Primeline Corporate Presentation July 2015 16
Valuation reflects neither progress to date nor upside potential Phase 1 of LS36-1 generates annualised EBITDA of circa CAD80m. Selling into one of the key provinicial economies in China one of the highest gas price regions in the…
Appendices Supplementary Technical and Operational Data Board of Directors Management and Technical Team Corporate Structure Primeline Corporate Presentation July 2015 18
LS36-1: Development milestones Commercial Agreements Gas Sale Agreement-in-principle signed, subsequent Framework and Amendment October 2008 Agreements signed in 2011 and 2012 End 2009 Overall Development Program completed March…
Development in images Jacket Installation Development Drilling Topside lifted May 2013, July 2012 completed April 2013 installation completed June 2013 Primeline Corporate Presentation July 2015 21
Onshore Processing Terminal in operation Burner Storage Central Control Office & Living Lab Operation & CO2 Fire-fighting Processing Loading Gas Zone Processing Slug Catcher Primeline Corporate…
LS36-1: Wells LS36-1-2 LS36-1-1 A3 A5 A4P P Proposed Horizontal Well A2H A1M M1-0 Mapped Area Top M1-2 / M1-1 Merged & M1-0 (Patch) Contoured to GWC (5m CI) Primeline Corporate Presentation July 2015 23
LS36-1: Production well design Horizontal and Multi-Lateral Gas Production wells increase potential gas rates, especially in tight gas reservoirs, and increase effective drainage area. A5 A3 drilled as a Vertical well to allow…
Board of Directors Victor Hwang Chairman and President Mr. Hwang is Executive Director of the publicly listed Hong Kong Parkview Group Ltd., a division of the family controlled Chyau Fwu Corporation. Parkview's core business includes…
Management & Technical Team Ming Wang Director and CEO Dr. Wang He joined Primeline in 1994 and was appointed as Vice President of Exploration in December 1996. Since then he has been responsible for all technical and commercial…
Management & Technical Team Alan Soulsby Technical Director Mr. Soulsby joined as Technical Director in 1994 and was responsible for the initial block selection and the exploration programme which led to the LS36-1 discovery and ongoing…
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