Imminent gas production to East China Market Backed by large exploration acreage with huge upside PRIMELINE ENERGY HOLDINGS INC. Corporate Presentation November 2013
The Company Primeline Energy Holdings Inc. TSX Venture listed (PEH:TSXV) oil and gas exploration company Exclusively focused on China energy opportunities in the last 20 years with first gas production expected within the next 12…
East China Sea Location Adjacent to the most populous and well developed part of China with growing gas energy needs Proven petroleum province, under- explored, with defined exploration targets New E&P focus in Xihu Trough…
Block 25/34(85 km2) & Block 33/07(5,877 km2) Development near completion for LS36-1 gas field, to secure market access and to build production infrastructure hub in the region Continuous exploration anchored around the 737km2…
Petroleum Contracts (25/34 & 33/07) Block 25/34 relates only to the development and production phase of LS36-1 gas field with 85 km2; Operator: CNOOC Block 33/07 has seven years exploration period of three phases (3, 2, 2 years), the…
Zhejiang Gas Grid Planned LS36-1 gas field Throughput is an important of circa 8 strategic bcmpa in resource close 2015 to Zhejiang Province and a supplemental supply to Zhejiang gas grid -6-
Gas Sale Agreement Primeline and CNOOC have agreed to sell LS36-1 gas to Zhejiang Provincial Gas grid The Province has population of 50 million and is the 4th largest economy in China with gas utilisation of only 2.8% of total…
LS36-1 Reserves Two discovery wells, DST test 9.8 MMcfd and 12.6 MMcfd Phase 1 four producers drilled and completed in April 2013 McDaniel reserves estimate as follows: Probable Gas 66.9 Bcf, liquid: 3.5 MMbbl; total BOE 14.7 MMbbl…
Development Scheme Platform facility Development well: 4 Subsea pipeline: 126.9km Onshore terminal: Sale gas pipeline terminal to grid: 31.7km -9-
LS36-1 Development Milestones Commercial Agreements Oct 2008 Gas Sale Agreement-in-principle signed, subsequent Framework and Amendment Agreements signed in 2011 and 2012 End 2009 Overall Development Program completed March 2010…
ODP and Government Approval Governmental agency-related procedures Jun 2011 Safe assessment approved Dec. 2011 Occupational hazard assessment approved Feb. 2012 Pipeline route approved May 2012 Environmental Impact Assessment (EIA)…
Development Current Status Platform Jacket installed in July 2012, topside and living quarters installation completed in June 2013 127 km of subsea pipeline & 12 km of sales gas pipeline laid by Oct 2012, 17 km of sales gas pipeline…
Jacket Installation July 2012 -14-
Development Drilling completed April 2013 -15-
LS36-1 Phase 1 Well Status A3 LS36-1-1 LS36-1-2 A5 A4P Proposed Horizontal Well A2H A1M M1-0 Mapped Area Top M1-2 / M1-1 Merged & M1-0 (Patch) Contoured to GWC (5m CI) -16-
LS36-1 Gas 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…
Topside Lifted April 2013, Installation completed June 2013 -18-
Terminal Construction Burner Storage Central Control Office & Living Lab CO2 Operation & Processing Fire-fighting Gas Loading Processing Zone Slug Catcher -19-
Terminal Near Completion -20-
LS36-1 Development Budget Total Investment Budget circa US727 M including Development Capex circa US608 M, some will be spent after production Primeline (PEH+PPC)s share of Capex (49%): US297M PEH share of Capex (36.75%): US223M…
Project Finance China Development Bank (CDB) agreed to provide project finance for PEH and PPCs share of LS36-1 development costs Revised Loan Memorandum signed on 2nd Nov 2012 Facility of US300 M covers almost all development…
LS36-1 Production is Imminent Gas Sale Framework Agreement with Zhejiang Gas CNOOC 51% and is Operator Project finance for the development confirmed Procurement and fabrication completed, onsite construction near completion,…
Additional Gas Resources Step-out and Exploration Additional possible reserves and prospective resources in the field itself, through phase 2 ODP drilling Significant potential in nearby prospects that have been defined by 3D…
Prospective Resources By McDaniel Prospective Resources - Natural Gas Risked (2) Prospective Resources - Unrisked (1) Chance of Resources Low Median Mean High Mean Success Prospect MMcf MMcf MMcf MMcf MMcf % LS36-1 Paleocene - M1-0…
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 M11 M12 M2 M31 M32 L1 L2 -26-
Reserve Additions for Phase 2 ODP Drilling from Platform Existing wells shown in black LS36-1 M11 Sth well LS36-1 M10 well 30-8 Exploration Prospect Wells LS36-1 M11 SW well LS36-1 M2 & M3 wells 8 locations and well…
M10 Untested Sand Designed as deviated well targeted to thick M10 section Well penetrates entire M10 stratigraphic section. Top M10 3D Horizon Shaded to show M10 Isochore M10 GIIP calculates with Prospect Range of: P90: 6.8…
M1-1 South Structure Base = -2300 m C.I. = 5 m Designed as deviated well targeted to thick M11 Southern Fault Block GIIP calculate with GIIP range of: P90: 4.4 P50: 9.5 P10: 20.8 Bcf LS36-1 M11 South Fault Block…
LS36-1 M11 South-West Extension Well Designed as deviated well targeted to M11 Primary Target 2248m TVDSS Well expected to LS36-1 2277m TVDSS GWC provide acceleration of production for existing M11 GIIP volumes LS36-1_SW…
LS36-1 Field & Nearby Prospects Several prospects near discovery, with TCF Prospective Resources Prospects and discovery have similar geological and geophysical features 3D seismic data interpretation leads to the selection…
Lishui Gas Play LS30-3-1 LS30-3 LS29-2 LS36-1 LS35-1 Platform LS35-3-1 Discovery LS35-3 -32-
LS36-1 Field Nearby Prospects Planned new 3D seismic acquisition to expand the coverage in the gas play Future 3D work will cover the oil play prospects Exploration drilling in 2014 LS35-3-1 Discovery after LS36-1…
Development Led Exploration Covers majority of the Lishui Basin which has: two commercial flow wells (Primelines) new discovery seven regional wells in and around the basin have hydrocarbon shows 737 km2 of or flows existing…
Summary Long term close relationship with CNOOC One of the very few offshore gas development in China Market access to one of the most dynamic but energy starved province in China, high gas price region Phase 1 development…
Appendix Board of Directors and Corporate Structure -36-
Corporate Structure Trading Symbols PEH - TSX Venture Exchange Shares Outstanding 103,468,518 Fully Diluted 109,173,518 Current Working Capital C513,244 (30th Sept) Fully Diluted Proceeds C2.79 M (C0.49 avg. strike price) Corporate…
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 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…
Contact Dr. Ming Wang Andrew Biggs Chief Executive Officer Senior VP mingwangpehi.com andrewbiggspehi.com Primeline Energy Holdings Inc. Primeline House 14 South Audley Street London W1K 1HN, UK Tel: +44 207 499 8888 Fax: +44 207…
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