HONG KONG, CHINA--(Marketwired - March 1, 2017) -
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Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH) today announced that it has filed its interim unaudited financial statements for the quarter ended December 31, 2016 and related management discussion and analysis. Copies of these documents may be obtained at www.SEDAR.com under Primeline's profile or on Primeline's website at www.primelineenergy.com.
During the quarter under review, the Company, together with its partner CNOOC, has delivered approximately 64.51 million cubic metres (mmcm) natural gas from LS36-1 to Zhejiang Gas under the Gas Sales Contract. Volumes were about 89% higher than the 34.06 mmcm in the previous quarter, and represented a significant improvement over the 56 mmcm in the quarter ending December 31, 2015.
The production facility of LS36-1 operated safely and smoothly without technical issues and CCL continued to finalize the remainder of the development, including the development of a dock for transporting future sales of by-products.
Primeline's total oil and gas revenue recognized for the quarter was RMB94 million (CAD$18.2 million), as compared to RMB86 million (CAD$16.7 million) for the same quarter in the previous year. As previously disclosed, the Company does not recognise as revenue substantial amounts it believes are owing to it under the Gas Sales Contract with its customer, Zhejiang Gas. Agreements to settle the dispute with Zhejiang Gas were signed today and are the subject of a separate press release.
EBITDA (a financial measure which does not have any standardized meaning under the Company's GAAP and therefore may not be comparable to similar measures presented by other issuers) provides useful information to investors as a measure of underlying cash profitability. The Company's EBITDA for the quarter was RMB63 million (CAD$12 million) presented before exchange difference, which has been volatile. Because of the substantial depreciation charge of RMB88 million (CAD$17 million), and particularly the foreign exchange loss as a result of the sharp depreciation of RMB against US$ of RMB75 million (CAD$14 million), the Company's quarterly net loss was RMB124 million (CAD$24 million).
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.
Ming Wang, Chief Executive Officer
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. 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.