Offshore staff

LONDON --Primeline Energy Holdings Inc. has completed a 550 sq km (212 sq mi) 3D survey in block 25/34 of the East China Sea. Data was merged with an existing 233 sq km (90 sq mi) 3D survey, and final combined results are expected by the end of 1Q 2007.

Further definition of the Lishui 36-1 gas discovery and adjacent prospects was the survey target. Primeline plans to drill one or two wells in Lishui with the locations based on results of the seismic work.

Primeline owns a 75% interest in block 25/34 with China National Offshore Oil Corp. Primeline is the operator. The two Lishui gas discovery wells flowed at 9.9 and 12.6 MMcf/d. Block 25/34 covers 7,006 sq km (2,705 sq mi) in the basin where seven additional wells in encountered oil and gas.

02/07/2007