COSL to drill two wells for Primeline offshore China

Primeline Energy has signed a letter of intent with China Oilfield Services Co. Ltd. for exploration drilling in block 33/07 in the East China Sea.

Jul 24th, 2015

Offshore staff

HONG KONG - Primeline Energyhas signed a letter of intent (LOI) with China Oilfield Services Co. Ltd. (COSL) for exploration drilling in block 33/07 in the East China Sea.

After completing interpretation of3D seismic data over the block, Primeline and partner CNOOC selected drilling locations.

This allowed Primeline to finalize the well design and conclude discussions with drilling contractors, culminating in the LOI.

COSL will drill two wells; the first will be LS23-1-1, with the second to be determined following evaluation of the results.

Primeline anticipates total drilling costs for the wells at around $20 million, excluding testing in the event of a discovery.

This is the first step in the partners’ strategy to prove more hydrocarbons for swift development via production infrastructure serving the nearbyLS36-1 offshore gas field.

07/24/2015

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