Primeline Energy Holdings Inc. Corporate Presentation April 1 2016 Primeline Corporate Presentation -April 1, 2016 1
Building a Leading China Focused Oil and Gas Company 1. TSX-V listed E&P China gas play with strong management team 2. Producing since 2014 from 700m+ regional production infrastructure hub in East China Sea in partnership with CNOOC…
Location 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 pipeline to Shanghai terminal Chunxiao Field:…
Project LS36-1 gas field in production, Newly acquired accessing market 600 km2 of 3D through the regional seismic production infrastructure hub Exploration in the immediate vicinity and the rest of the Block anchored 737…
Market: Access to Zhejiang Gas Grid LS36-1 is a strategic gas field close to Zhejiang Province - Ningbo population 50 LNG million Fourth largest economy in China Rapid growth in past 10 years to 6.6 bcmpa; slow down in…
LS36-1: Infrastructure Hub is Completed Platform facility Four development wells Subsea pipeline: 126.9 km to onshore terminal Sale gas pipeline: 32 km to grid Primeline Corporate Presentation -April 1, 2016 6
Chinese Gas Market in 2014 - 2015 Rapid gas infrastructure development (LNG terminal and long distance pipeline) in the last 10 years Dramatic oil and coal price reductions since late 2014 Slow down of Chinese economy has led to a…
East China Gas Developments West-East Pipeline Projects Phase 1: 4,000 km pipeline from Xinjiang province to Shanghai; 18 bcmpa, on-stream September 2004 Phase 2: West Gas to East: 6,000 km (9,000 including branches) from…
2015 Operations Summary Production period commenced December 1, 2014, and Gas Sale Contract delivery period commenced January 1, 2015 Working in challenging market conditions to maintain production and cash flow Q2 production…
Exploration Two Well Commitment Block 33/07 Petroleum Contract carries a two exploration well commitment Well location selected along the western margin of the Lishui basin with multiple target zones; design completed by July 2015…
2015 Exploration Drilling Program Block 33/07 showing well locations and LS36-1 Gas Field Western Margin Fault Block Zone LS23-1-1 LS30-3-1 First well: LS23-1-1 TD 2666m Second well LS30-3-1 TD 2000m Primeline…
Seismic Correlation A A LS35-3-1 LS36-1 Field LS30-3-1 LS23-1-1 Gas Gas Flow Shows T42 Horizon T50 Horizon A A Primeline Corporate Presentation -April 1, 2016 12
LS23-1-1 October 2015 Lower MYF and Lingfeng Primary targets LS23-1-1 Zone of gas shows Primeline Corporate Presentation -April 1, 2016 13
LS30-3 Prospects 1C Amplitude Anomaly with AVO Minimum Amplitude Extraction 5ms window on Fullstack Strongest AVO Weaker AVO P50 Area P10 Area Primeline Corporate Presentation -April 1, 2016 14
2015 Drilling Results Cost effective and smooth drilling operation Both LS23-1-1 and LS30-3-1 wells encountered very good sandstone reservoir, as predicted LS23-1-1 well has gas shows in three zones, and has several thin…
Prospective Resources (McDaniel) Drilling Prospective Resources - Natural Gas Risked (2) Prospective Resources - Unrisked (1) Chance of Resources Success (3) Prospect Low Medium Mean High Mean MMcf MMcf MMcf MMcf MMcf % LS36-1…
Additional Resources in Lower Zones Current producers are in M1-1 and 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 Eight locations and…
LS36-1 Field Nearby Prospects In 2014, we expanded 3D seismic coverage by 600 km to 1,300 km in the gas play Exploration drilling in 2015 to tap into prospects in the vicinity of LS36-1 Future 3D work will cover the oil play…
Valuation Reflects Neither Progress to date nor Upside Potential Phase 1 of LS36-1 is cash flowing; Selling into one of the key provincial economies in China. Despite slower demand recently, this remains one of the highest gas price…
Appendices Supplementary Technical and Operational Data Board of Directors Management and Technical Team Corporate Structure Primeline Corporate Presentation -April 1, 2016 22
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…
LS36-1: Development in images Jacket Installation Development Drilling Topside lifted May 2013, September 2012 completed April 2013 installation completed June 2013 Primeline Corporate Presentation -April 1, 2016 25
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 -April 1, 2016 26
Board of Directors Victor Hwang Chairman and President 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 property…
Non-Board Senior Management & Technical Team Stuart Joyner Chief Financial Officer Mr. Joyner joined in 2014 from Sound Oil where he was CFO and has 22 years' experience in the oil and gas sector. Prior to industry, he spent 18 years in…
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