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Primeline Energy Holdings Inc
Symbol PEH
Shares Issued 189,265,344
Close 2017-03-23 C$ 0.22
Market Cap C$ 41,638,376
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Primeline receives full payment re Zhejiang settlement

2017-03-24 12:45 ET - News Release

Dr. Ming Wang reports

PRIMELINE RECEIVES SETTLEMENT PAYMENT OF ZHEJIANG GAS DISPUTE

Primeline Energy Holdings Inc. has now received the full payment due under the recently agreed settlement of the dispute with Zhejiang Natural Gas Development Company Ltd. in relation to the gas sales contract for LS36-1 (GSC).

As previously announced, on March 1, 2017, settlement agreements were signed between Primeline and CNOOC China Ltd. (CCL) and CCL with Zhejiang Gas relating to the dispute Primeline had with Zhejiang Gas with regard to the GSC. Following the execution of the agreements, Zhejiang Gas paid the overdue amount in full to CCL and Primeline applied to withdraw the arbitration proceedings against Zhejiang Gas before the China International Economic and Trade Arbitration Commission (CIETAC). CIETAC formally confirmed the termination of the arbitration proceedings on March 21, 2017, and Primeline has received today 256 million renminbi ($49-million) net of value-added tax for its share of all outstanding, unpaid or partly paid amounts due to the end of 2016 including take-or-pay payments for 2015 and 2016; plus a sum of 12 million renminbi ($2.3-million) relating to the difference between the agreed price and the price previously paid from Jan. 1 to Feb. 28, 2017. These payments represent the full and final settlement amount due in settlement of the dispute with Zhejiang Gas.

The production rate is being maintained at the design level of circa 25 million cubic feet per day and the payment process is now normalized.

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-per-cent contractor's interest in, and is the operator of, the petroleum contract with CNOOC for block 33/07 (4,397 square kilometres) and a 49-per-cent interest in the producing LS36-1 gas field in block 25/34, together with CNOOC (51-per-cent interest and acting as operator). Both blocks are in the East China Sea. LS36-1 has been in production since July, 2014.

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