Primeline Energy Holdings Inc: Producing to Chinas dynamic gas market and monetizing upside November 2014 1 Primeline Corporate Presentation November 2014
PEH - Producing to Chinas dynamic gas market 1. High growth, high price East China gas market for investors via TSX-V listed Primeline Energy Holdings Inc. - with secured access to market. 2. 700m+ regional production infrastructure…
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 energy needs are presently met mostly by coal and oil (40% of which is…
Gas sale contract access to 8 bcmpa Zhejiang Gas Grid LS36-1 is a strategic gas field close to Zhejiang Province - Ningbo population of 50 LNG million; 4th largest economy in China, Current gas utilisation of only about 2.8% of…
East China Sea becoming a significant gas production basin Proven petroleum province, defined exploration targets. New E&P focus in Xihu Trough (Basin) in northern East China Sea, anchored on two existing fields: Pinghu Field:…
Primelines Structure and our Petroleum Contracts Primeline (PEH) has 75% and Primeline Petroleum Corporation (PPC) has 25% of Contractors Rights respectively on two Petroleum Contracts in the East China Sea Block 25/34 and Block…
LS36-1: Infrastructure hub is completed and producing All development work completed and production started: Platform facility Development wells: 4 Subsea pipeline: 126.9km Onshore terminal: Sale gas pipeline Terminal to…
LS36-1: Reserves Two discovery wells, DST tested at 9.8 MMcfd and 12.6 MMcfd Phase 1 four producers drilled and completed in April 2013 Flow test finished in May 2014, production since July 2014 McDaniel and Associates Proved +…
LS36-1: Budget and Project Finance Total Investment Budget circa US 727M including Development Capex circa US 608M, some will be spent after production Primelines share of Capex (PEH+PPC 49%: US 297M; PEH 36.75%: US 223M) has been…
Valuation has not yet reflected impressive operational progress Production started ODP approved Dev. Drilling completed Jacket installed Fabrication Agreement signed 10 Primeline Corporate Presentation November 2014
Block 25/34(85 km2) & Block 33/07 (5,877 km2) Development completed for LS36- 1 gas field, secured Newly acquired market access and 600 km2 of 3D built regional seismic production infrastructure hub. High impact exploration to…
Additional high margin resources will be drilling from 2015 on Block covers majority of the Lishui Basin which has: Primelines exploration wells which led to the new discovery seven regional wells in and around the basin have…
Prospective Resources McDaniel July 2014 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 reservoir, Cross-section of LS36-1 M11 M12 M2 M31 M32 L1 L2 14 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 Prospect Range of: P90: 6.8 P50: 13.3 P10: 26.0 Top M10 3D Horizon Bcf…
LS36-1 Field and Nearby Prospects New 600 sq. km 3D seismic in 2014 to expand coverage in the gas play acquisition completed in May 2014; processing in progress; interpretation nearly completed. Additional 3D seismic may be…
Lishui Gas Play LS30-3-1 LS30-3 LS29-2 LS36-1 Platform LS35-1 LS35-3-1 Discovery LS35-3 18 Primeline Corporate Presentation November 2014
Valuation reflects neither progress to date nor upside potential Market access to one of the most dynamic but energy short provinces in China High gas price region. Long term close relationship with CNOOC. Management with proven…
Appendices Supplementary Technical and Operational Data Board of Directors Management and Technical Team Corporate Structure 20 Primeline Corporate Presentation November 2014
LS36-1: Development milestones Commercial Agreements Gas Sale Agreement-in-principle signed, subsequent Framework and Amendment Oct 2008 Agreements signed in 2011 and 2012 End 2009 Overall Development Program completed March…
Development in Images Jacket Installation Development Drilling Topside lifted April 2013, July 2012 completed April 2013 installation completed June 2013 23 Primeline Corporate Presentation November 2014
Onshore Processing Terminal Burner Storage Central Control Office & Living Lab Operation & CO2 Fire-fighting Processing Loading Gas Zone Processing Slug Catcher 24 Primeline Corporate Presentation…
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) 25 Primeline Corporate Presentation November 2014
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…
Board of Directors Peter Kelty Non-Executive Director Mr. Kelty has extensive experience in restructuring and financing major Asian regional corporations as well as advisory work for European and US multi-nationals. Mr. Kelty is a…
Management & Technical Team Ming Wang Director and CEO Dr. Wang holds a PhD in Geology from Imperial College, London. He joined Primeline in January 1994 and was appointed as Vice President of Exploration in December 1996. Since then he…
Management & Technical Team Alan Soulsby Technical Director Mr. Soulsby graduated from Oxford University with a degree in Physics in 1970 followed by a Masters in Geophysics. He has had a wide and varied career in the petroleum industry…
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