Primeline Energy Holdings Inc. has received confirmation of the approval of the petroleum contract for Block 33/07 (“Petroleum Contract 33/07”) from the Ministry of Commerce in China.
As previously announced, Primeline and CNOOC entered into a new petroleum contract for Block 33/07 on 15th June 2012. Petroleum Contract 33/07 was subject to the approval of the Ministry of Commerce of China and Primeline has received confirmation from CNOOC that such approval has been granted. The effective date of the Petroleum Contract 33/07 is 1st November 2012.
Block 33/07 covers an offshore area of 5,877 Sq km (1.45 million acres) enclosing Block 25/34 and the Contractor’s interest is shared 75% /25% by the Company and Primeline Petroleum Corporation (“PPC”). Petroleum Contract 33/07 has a 7-year exploration period divided into 3 exploration phases of 3, 2 and 2 years, each with a minimum work commitment. The firm commitment in the first phase is for two exploration wells plus 660 sq km of 3D seismic. Any discoveries in the new contract area have the right to use the production facilities being built for the LS36-1 gas field. The fiscal terms for Petroleum Contract 33/07 are the same as the previous petroleum contract for Block 25/34.
[mappress] Press Release, October 30, 2012