Primeline Energy Holdings Inc. Corporate Presentation Se pte mbe r - - PowerPoint PPT Presentation

1 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Se pte mbe r 2016

Primeline Energy Holdings Inc. Corporate Presentation

2 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

1. T SX-V liste d E &P China g a s pla y with stro ng ma na g e me nt te a m 2. Pro duc ing fo r o ve r 2 ye a rs fro m $700m+ re g io na l pro duc tio n infra struc ture hub in E a st China Se a in pa rtne rship with CNOOC 3. Ga s is so ld unde r a 15 ye a r ta ke o r pa y c o ntra c t fe a turing a fixe d b a sic pric e 4. Ac c e ss to the e a ste rn China g a s ma rke t. China is the wo rld’ s se c o nd la rg e st e ne rg y ma rke t, b ut with g a s a t just 5.5% o f to ta l e ne rg y mix, inc re a se d g a s utiliza tio n ha s b e c o me a fo c us o f Chine se g o ve rnme nt e ne rg y po lic y 5. Hig h ma rg in hydro c a rb o n upside in the fie ld a nd in the 4,397 km2 e xplo ra tio n c o nc e ssio n whe re we ha ve e le c te d to e nte r the se c o nd pha se o f the ro lling e xplo ra tio n pro g ra m. Altho ug h c o mme rc ia l hydro c a rb o ns we re no t fo und in pha se 1, the te c hnic a l disc o ve ry pro vide s vita l info rma tio n fo r future e xplo ra tio n

Building a L e a ding China F

• c use d Oil and Ga s Company

3 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• Pro ve n pe tro le um pro vinc e
• Ne w E

&P fo c us in Xihu T ro ug h (Ba sin) in No rthe rn E a st China Se a , a nc ho re d o n two e xisting fie lds:

• Ping hu F

ie ld: o nstre a m in 1998, 386 km 14” pipe line to Sha ng ha i te rmina l

• Chunxia o F

ie ld: o nstre a m in 2006, 360 km 28” pipe line to Ning b o a nd fo ur pro duc tio n pla tfo rms. E xpa nsio n de ve lo pme nt unde rwa y

• L

S36-1 Ga s F ie ld: o n stre a m in 2014

L

• c ation

4 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• L

S36-1 g a s fie ld in pro duc tio n, a c c e ssing ma rke t thro ug h the re g io na l pro duc tio n infra struc ture hub

• Ro lling de ve lo pme nt

in fie ld

• E

xplo ra tio n in the 4,397 km2 c o nc e ssio n c a n b e ho o ke d into the pro duc ing L S36-1 fa c ility

737 km2 of existing 3D seismic data Newly acquired 600 km2 of 3D seismic

Pr

• je c t

5 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• L

S36-1 is a stra te g ic g a s fie ld c lo se to Zhe jia ng Pro vinc e - po pula tio n 50 millio n

• F
• urth la rg e st

e c o no my in China

• Co nso lida tio n a fte r

ra pid g ro wth in pa st 10 ye a rs to ~6.6 b c mpa

• Ga s is o nly 2.8% o f

to ta l e ne rg y mix

Ningbo L NG

Mar ke t: Ac c e ss to Zhe jiang Gas Gr id

6 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

L S36- 1: Infr astr uc tur e Hub is Comple te d

7 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• Ra pid g a s infra struc ture de ve lo pme nt (L

NG te rmina l a nd lo ng dista nc e pipe line ) in the la st 10 ye a rs

• Dra ma tic o il a nd c o a l pric e re duc tio ns sinc e la te 2014
• Slo w do wn o f Chine se e c o no my ha s le d to a slo w do wn o f g a s de ma nd

a nd a n o ve rsupply

• Ga s pric e fo r o nsho re pipe line g a s in China dro ppe d o n Se pte mb e r a nd

No ve mb e r 20, 2015 b y 34% in Zhe jia ng Pro vinc e

• Sig nific a nt pre ssure o n L

S36-1 g a s o n pric e a nd q ua ntity

• L
• ng te rm, still re ma ins a ve ry a ttra c tive ma rke t
• Still the hig he st g a s pric e re g io n in the wo rld
• China g a s usa g e is o nly 5.5% o f to ta l e ne rg y mix

Chine se Gas Mar ke t in 2014 - 2015

8 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

We st- E ast Pipe line Pr

• je c ts
• Pha se 1: 4,000 km pipe line fro m Xinjia ng pro vinc e to

Sha ng ha i; 18 b c mpa , o n-stre a m Se pte mb e r 2004

• Pha se 2: We st Ga s to E

a st: 6,000 km (9,000 inc luding b ra nc he s) fro m T urkme nista n to Gua ng zho u a nd Sha ng ha i; 30 b c mpa pla nne d; o n-stre a m 2012

• Sic hua n Ga s T
• E

a st: 2,150 km pipe line fro m Sic hua n to Sha ng ha i; 12 b c mpa ; o n-stre a m Se pte mb e r 2010

L NG Pr

• je c ts
• She nzhe n L

NG (3 mto n): first de live ry in 2006; Pla nne d e xpa nsio n to 7 mto n

• F

ujia n L NG: (2.6 mto n) first de live ry 2009

• Ning b o L

NG: first de live ry 2013

• Othe r L

NG te rmina ls c o mple te d o r unde r de ve lo pme nt

Offshor e Gas F ie lds

• T

he re a re e ig ht g a s pipe line s to E a st China tha t a re o pe ra tio na l fro m o ffsho re g a s fie lds

E ast China Gas De ve lopme nts

9 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• L

S36-1 g a s is so ld to Zhe jia ng Ga s unde r a 15 ye a r ta ke o r pa y Ga s Sa le Co ntra c t (GSC) sig ne d b y CNOOC, o n its o wn a nd Prime line ’ s b e ha lf, o n Oc to b e r 29, 2014. I t is the c o ntinua tio n o f a se rie s o f a g re e me nts da ting b a c k to the o rig ina l ta ke o r pa y g a s sa le a g re e me nt sig ne d in 2008 re q uire d b e fo re de ve lo pme nt c o mme nc e d .

• GSC’ s fixe d b a sic pric e a nd ta ke o r pa y pro visio n a re typic a l in this type o f pro je c t

a nd pro vide the upstre a m inve sto r with a se c ure inc o me stre a m. Prime line re lie d o n the GSC to se c ure the b a nk fina nc e fo r its sha re o f the de ve lo pme nt c o st.

• Zhe jia ng Ga s wa nts a re duc e d pric e to ma tc h o nsho re pipe line g a s pric e g uide line s

issue d b y the Chine se Go ve rnme nt. T he GSC pro vide s tha t the pa rtie s sho uld a t so me po int a g re e a pric e a djustme nt me c ha nism b ut Prime line ’ s po sitio n is tha t this must b e sub je c t to mutua l a g re e me nt. CNOOC ha s fa ile d to initia te a rb itra tio n dire c tly.

• Zhe jia ng Ga s o we s CNOOC a nd Prime line RMB450+ millio n a s a re sult o f pa rtia l

pa yme nt a nd no n-pa yme nt o f invo ic e s. Prime line a ntic ipa te s full c o lle c tio n o f a mo unts o wing a nd ha s no w c o mme nc e d a rb itra tio n a g a inst Zhe jia ng Ga s (CI E T AC) a nd CNOOC (UNCI T RAL ) to e nfo rc e its rig hts.

Ar bitr ation against Zhe jiang Gas and CNOOC

10 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

F irst we ll: L S23- 1- 1 T D 2666m Se c ond we ll L S30- 3- 1 T D 2000m Bloc k 33/ 07 showing we ll loc a tions a nd L S36- 1 Ga s F ie ld

LS23-1-1 LS30-3-1

Western Margin Fault Block Zone

2015 E xplor ation Dr illing Pr

• gr

am

11 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

T 42 Hor izon T 50 Hor izon

A A’

LS36-1 Field

A A’

LS23-1-1 Gas Shows LS35-3-1 Gas Flow

Se ismic Cor r e lation

LS30-3-1

12 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Pr imar y tar ge ts

LS23-1-1

Zone of gas shows

L S23- 1- 1 Oc tobe r 2015 – L

• we r

MYF and L ingfe ng

13 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Minimum Amplitude E xtr ac tion ±5ms window on F ull stac k

Strongest AVO Weaker AVO

P50 Area P10 Area

L S30- 3 Pr

• spe c ts 1C Amplitude Anomaly with AVO

14 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

1A 1B T42 1C

LS30-3-1

We ll L

• c ation L

S30- 3- 1

15 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• Co st e ffe c tive a nd smo o th drilling o pe ra tio n Blo c k 33/ 07 two e xplo ra tio n we lls We ll

lo c a tio n se le c te d a lo ng the we ste rn ma rg in o f the L ishui b a sin with multiple ta rg e t zo ne s; de sig n c o mple te d b y July 2015

• Bo th L

S23-1-1 a nd L S30-3-1 we lls e nc o unte re d ve ry g o o d sa ndsto ne re se rvo irs, a s pre dic te d

• L

S23-1-1: 81 m o f wa te r a b o ut 24 km no rth o f L S36-1 pla tfo rm; re a c he d to ta l de pth (T D) o f 2,666 m o n Oc to b e r 21, 2015, L S23-1-1 we ll ha s g a s sho ws in thre e zo ne s, a nd ha s se ve ra l thin re se rvo irs with pa y q ua lity with a to ta l c umula tive thic kne ss o f 14 m. Othe r re se rvo irs a re wa te r b e a ring

• L

S30-3-1: 83.5 m o f wa te r a b o ut 20 km no rth o f the L S36-1 pla tfo rm; re a c he d T D o f 2,000 m o n No ve mb e r 27, 2015. L S30-3-1 pro vide d g o o d c ha nne l sa nd g e o me try in the L S36-1 Ga s F ie ld re se rvo ir le ve l, b ut wa te r b e a ring

• No c o mme rc ia l disc o ve ry a nd mig ra tio n re ma ins the ke y risk

2015 Dr illing Re sults

16 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Gr

• ss Pr
• spe c tive Re sour

c e s - Na tur a l Ga s – 31/ 3/ 16

Pro spe c tive Re so urc e s - Unriske d (1) Riske d (2) Re so urc e s Cha nc e o f Suc c e ss (3) Pro spe c t L

• w

Me dium Me a n Hig h Me a n MMc f MMc f MMc f MMc f MMc f % L S36-1 Pa le o c e ne -M1-0 2,740 5,436 6,301 11,055 4,593 73 L S36-1 Pa le o c e ne -M1-1 1,716 3,936 4,729 8,745 3,447 73 L S36-1 Pa le o c e ne -M2 4,942 14,300 18,929 38,222 11,357 60 L S36-1 Pa le o c e ne -M3 14,308 31,325 37,045 67,044 25,932 70 L S36-1 Pa le o c e ne -L 1 8,347 23,808 32,791 68,497 16,395 50 L S36-1 Pa le o c e ne -L 2 2,353 5,271 6,448 11,998 2,579 40 L S30-8 Pa le o c e ne -M2 9,190 27,006 35,747 72,219 5,405 17 L S36- 1 Sub tota l) 43,595 111,081 141,989 277,770 69,709 L S23-2 N T

• ta l

7,549 23,443 34,834 74,191 3,102 80 L S23-2 S T

• ta l

8,459 28,480 43,444 93,278 3,662 80 L S29-3 Pa le o c e ne -M1-2 7,607 24,278 35,589 75,152 4,100 80 A Pa le o c e ne -M1-2 5,332 16,571 24,127 51,333 5,559 90 B Pa le o c e ne -M1-2 7,798 20,492 26,584 53,363 3,101 90 E No rth Pa le o c e ne -M1-2 2,755 7,366 9,614 18,902 433 60 E So uth Pa le o c e ne -M1-2 2,509 6,719 8,973 18,070 404 60 T 1 Cha nne l Pa le o c e ne -M1-2 7,610 23,636 34,220 73,465 6,338 90 T 3 De e p Pa le o c e ne -M1-2 10,326 27,565 36,333 73,366 7,151 90 L S35-1 T

• ta l

21,225 69,048 106,442 233,827 11,658 90

Bloc k 33/ 07 3D Se ismic Ar e a 81,171 247,598 360,158 764,948 45,508 T

• ta l Pr
• pe r

ty Gr

• ss

124,766 358,679 502,147 1,042,717 115,216

Ar

• und 1T

CF Pr

• spe c tive Re sour

c e s (Mc Danie l upside )

17 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• Curre nt pro duc e rs a re in M1-1 a nd M1-2 sa nds
• Additio na l g a s in o the r sa nds a nd in lo we r tig ht re se rvo irs

M11 M12 M2 M31 M32 L1 L2

Cr

• ss-se c tion of L

S36- 1

Additional Re sour c e s in L

• we r

Zone s

18 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

E xisting we lls sho wn in b la c k

30-8 Exploration Prospect Wells LS36-1 M2 & M3 wells LS36-1 M10 well LS36-1 M11 Sth well LS36-1 M11 SW well

• E

ig ht lo c a tio ns a nd we ll tra c ks se le c te d a s c a ndida te s fo r re se rve a dditio ns

Reserve Additions via Phase 2 Drilling from Platform

19 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

L S36- 1 F ie ld Ne ar by Pr

• spe c ts

20 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

• Pha se 1 o f L

S36-1 is c a sh flo wing – re c o rd re ve nue s o f CAD$36 millio n in ye a r 2

• Se lling into o ne o f the ke y pro vinc ia l e c o no mie s in China . De spite slo we r

de ma nd re c e ntly, this re ma ins o ne o f the hig he st g a s pric e re g io ns in the wo rld

• Ma na g e me nt with pro ve n tra c k re c o rd a nd o pe ra tio na l e xpe rtise
• One o f the ve ry fe w o ffsho re g a s de ve lo pme nts in China - with a wo rld c la ss

$700m+ infra struc ture hub

• Pha se 2 e xplo ra tio n pro g ra m plus ro lling de ve lo pme nt in c o nc e ssio n with

upside po te ntia l a b le to sha re infra struc ture

• T

he e a st sub -b a sin ha s o il po te ntia l to b e e xplo re d in the Blo c k

Va lua tion Doe s Not Re fle c ts Upside Pote ntia l

21 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Appe ndic e s

Supple me nta ry T e c hnic a l a nd Ope ra tio na l Da ta Bo a rd o f Dire c to rs Ma na g e me nt a nd T e c hnic a l T e a m Co rpo ra te Struc ture

22 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

L S36- 1: De ve lopme nt sc he dule

2009 2010 2011 2012 2013

9 # 11 # 1 2 3 4 5 6 7 8 9 # 11 # 1 2 3 4 5 6 7 8 9 # 11 # 1 2 3 4 5 6 7 8 9 # 11 # 1 2 3 4 5 6 7 8 9 # 11 # 1 2 3 4 5 6 7 8 9 # 11 # 1 2 3 4 5 6 7 8 9

Gas Sales Agreement Compilation of ODP Development Agreements & Execution Revisions of the ODP & EIA approval Basic Design Fabrication & installation of Jacket Fabrication & installation of Topsides Fabrication & laying of Subsea Pipeline Laying of Gas Sales Pipeline Construction of Terminal Drilling & completion Joint commissioning First Gas Development Activity Milestone Development Programme 2008 Critical Path First production date 2014

Activity

Agreement in principle Framework Agreement

23 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

L S36- 1: De ve lopme nt mile stone s

Co mme rc ia l Ag re e me nts Oc to b e r 2008 Ga s Sa le Ag re e me nt-in-princ iple sig ne d, sub se q ue nt F ra me wo rk a nd Ame ndme nt Ag re e me nts sig ne d in 2011 a nd 2012 E nd 2009 Ove ra ll De ve lo pme nt Pro g ra m c o mple te d Ma rc h 2010 De ve lo pme nt Ag re e me nts sig ne d De sig n a nd Co nstruc tio n De c e mb e r 2010 E ng ine e ring de sig n c o mme nc e d Se pte mb e r 2011 Pro c ure me nt a nd fa b ric a tio n c o mme nc e d Ma rc h 2012 Site insta lla tio n c o mme nc e d June 2013 Me c ha nic a l Co mple tio n o f pla tfo rm, te rmina l & o ffsho re pipe line July 2014 De ve lo pme nt c o mple te d a nd pro duc tio n c o mme nc e d Pro je c t F ina nc e July 2010 L

• a n Me mo ra ndum sig ne d

No ve mb e r 2012 Re vise d L

• a n Me mo ra ndum sig ne d

No ve mb e r 2014 CDB/ E XI M/ SPDB Pro je c t F ina nc e c o nfirme d , sig ne d a nd dra wn do wn

24 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Ja c ke t I nsta lla tio n Se pte mb e r 2012

De ve lo pme nt Drilling c o mple te d April 2013 T

• pside lifte d Ma y 2013,

insta lla tio n c o mple te d June 2013

L S36- 1: De ve lopme nt in image s

25 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

L S36- 1: We lls

LS36-1-2 LS36-1-1 A3 A1M A5 M1-0 Mapped Area

Proposed Horizontal Well

A2H A4P P

T

• p M1- 2 / M1- 1 Me rg e d & M1- 0 (Pa tc h) Contoure d to GWC (5m CI)

26 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Onshor e Pr

• c e ssing T

e r minal – in ope r ation

27 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Boar d of Dir e c tor s

Vic tor Hwang | Chair man and Pr e side nt

E xe c utive Dire c to r o f the pub lic ly liste d Ho ng K

• ng Pa rkvie w Gro up L

td., a d ivisio n o f the fa mily c o ntro lle d Chya u F wu Co rpo ra tio n. Pa rkvie w's c o re b usine ss inc lude s pro pe rty de ve lo pme nt, shipp ing a nd ho spita lity. He is a lso Pre side nt o f Pa rkvie w I nte rna tio na l L

• ndo n L

td - the c o mpa ny tha t so ld Ba tte rse a Po we r Sta tio n in L

• ndo n fo r US$780M in la te 2006. Mr. Hwa ng ho lds a BSc in Busine ss Administra tio n a nd ha s sig nific a nt

b usine ss a nd po litic a l re la tio nships in China .

Ming Wang | Dir e c tor and CE O

• Dr. Wa ng jo ine d in 1994, a ppo inte d a s Vic e Pre side nt o f E

xplo ra tio n in 1996 a nd CE O in 2006. Sinc e the n he ha s b e e n re spo nsib le fo r a ll te c hnic a l a nd c o mme rc ia l o pe ra tio ns fo r Prime line , inc lud ing the suc c e ssful drilling o pe ra tio n o f the L S36-1-1 disc o ve ry we ll. He ha s e xte nsive kno wle dg e o f, a nd c o nta c ts within, China 's pe tro le um industry. He ho lds a PhD in Ge o lo g y fro m I mpe ria l Co lle g e , L

• ndo n.

Br ian Chan | Dir e c tor

• Mr. Cha n ha s e xte nsive e xpe rie nc e in inte rna tio na l b a nking a nd c o mme rc e . He is Ge ne ra l Ma na g e r a nd Dire c to r o f the Ho ng K
• ng Pa rkvie w

Gro up L td a nd is a Ce rtifie d Ac c o unta nt.

Alan Johnson | Non- E xe c utive Dir e c tor

• Mr. Jo hnso n ha s o ve r 30 ye a rs’ o il industry e xpe rie nc e pa rtic ula rly in ma na g e me nt a nd o pe ra tio ns in Afric a , Russia a nd China . He wa s Chie f

Ope ra tio n Offic e r fo r the Cluff Gro up o f Co mpa nie s 1996-2000. He jo ine d Gle nc o re in 2000 a s se nio r upstre a m o il ma na g e r, lo o king a fte r pro je c ts inc luding a 280,000 b b lpd pro duc tio n ve nture a nd e xplo ra tio n in Afric a a nd So uth Ame ric a .

Pe te r Ke lty | Non- E xe c utive Dir e c tor

• Mr. K

e lty ha s e xte nsive e xpe rie nc e in re struc turing a nd fina nc ing ma jo r Asia n re g io na l c o rpo ra tio ns a s we ll a s a dviso ry wo rk fo r E uro pe a n a nd US multi-na tio na ls. Mr. K e lty is a Ce rtifie d Pub lic Ac c o unta nt a nd a me mb e r o f the I llino is Sta te Ba r. He ho lds a Ma ste rs in Busine ss Administra tio n with a ma jo r in Ac c o unting a nd is a Do c to r o f Jurisprude nc e .

Vinc e nt L ie n | Non- E xe c utive Dir e c tor

• Mr. L

ie n ha s 20 ye a rs’ e xpe rie nc e in b a nking , spe c ia lising in c o rpo ra te fina nc e a nd c a pita l ma na g e me nt in Asia , inc luding fo r Swiss Ba nk, Ba nke rs T rust a nd ABN AMRO. He is c urre ntly a dire c to r o f va rio us c o mpa nie s inc luding the Ma ritime & Po rt Autho rity o f Sing a po re , UP E ne rg y De ve lo pme nt Gro up L imite d , CT E nviro nme nta l Gro up L imite d a nd Viva China Ho lding s L imite d, e a c h liste d o n the Ho ng K

• ng Sto c k E

xc ha ng e .

• Mr. L

ie n o b ta ine d a Ba c he lo r’ s de g re e in Busine ss Administra tio n fro m the Unive rsity o f Ne w Brunswic k in 1986.

T im Baldwin | Non- E xe c utive Dir e c tor

• Mr. Ba ldwin is a pa rtne r o f Ge ne ra l E

nte rprise Ma na g e me nt Se rvic e s (HK) L td., a priva te e q uity fund ma na g e me nt firm spe c ia lizing in inve stme nt in c o mpa nie s o pe ra ting in Asia in ne e d o f e q uity fo r stra te g ic g ro wth, a c q uisitio ns, ma rke t e xpa nsio n o r b a la nc e she e t re struc turing .

28 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Non- Boar d Se nior Manage me nt & T e c hnic al T e am

Stuar t Joyne r | Chie f F inanc ial Offic e r

• Mr. Jo yne r jo ine d in 2014 fro m So und Oil whe re he wa s CF

O a nd ha s 22 ye a rs' e xpe rie nc e in the o il a nd g a s se c to r. Prio r to industry, he spe nt 18 ye a rs in inve stme nt b a nking a t I nve ste c a nd Cre dit Suisse , whe re he he a de d se c to r c o ve ra g e a nd pre vio usly a t Mo rg a n Sta nle y, Dre sdne r K le inwo rt a nd Na tWe st Se c uritie s. He ho lds the ACCA Diplo ma in Ac c o unting a nd F ina nc e a nd a n MA (Ho ns) in Ge rma n a nd F re nc h fro m the Unive rsity o f E dinb urg h in 1994.

Andr e w Biggs | Se nior Vic e Pr e side nt and Ge ne r al Counse l

• Mr. Big g s jo ine d in 2007 a s Ge ne ra l Co unse l. Be twe e n 1981 a nd 1998, he wa s a pa rtne r with inte rna tio na l la w firm Ric ha rds Butle r, b o th in

Ho ng K

• ng a nd L
• ndo n. Mr. Big g s spe c ia lise d in c o rpo ra te fina nc e tra nsa c tio ns a nd wa s invo lve d in ma ny o f the e a rly H-sha re listing s o f

ma inla nd Chine se c o mpa nie s o n the HK Sto c k E xc ha ng e . I n 1998, Mr. Big g s jo ine d Pa rkvie w Gro up a s the Co rpo ra te Affa irs Dire c to r. He is q ua lifie d a s a so lic ito r in E ng la nd a nd in Ho ng K

• ng .

Alan Soulsby | T e c hnic al Dir e c tor

• Mr. So ulsb y jo ine d in 1994 a s T

e c hnic a l Dire c to r a nd wa s re spo nsib le fo r the initia l b lo c k se le c tio n a nd the e xplo ra tio n pro g ra mme whic h le d to the L S36-1 disc o ve ry a nd o ng o ing e va lua tio n wo rk. He ha s ha d a wide a nd va rie d c a re e r in the pe tro le um industry with o ve r 35 ye a rs’ inte rna tio na l e xplo ra tio n e xpe rie nc e , inc luding ma na g ing E xplo ra tio n Co nsulta nts L

• td. fo r a numb e r o f ye a rs a nd ma na g ing ma ny la rg e

inte g ra te d e xplo ra tio n a nd e va lua tio n pro je c ts. He g ra dua te d fro m Oxfo rd Unive rsity with a de g re e in Physic s in 1970 fo llo we d b y a Ma ste rs in Ge o physic s.

Br ian T hur le y | E & P Coor dinator

• Mr. T

hurle y jo ine d in 2014 to wo rk with Ala n So ulsb y to ma na g e the e xplo ra tio n pro g ra m a nd p ro duc tio n o f the L S36-1 g a s fie ld. He ha s o ve r 35 ye a rs’ G&G e xpe rie nc e in inte rna tio na l o il a nd g a s e xplo ra tio n a nd pro duc tio n pro je c ts inc luding I nte rna tio na l E xplo ra tio n Ma na g e r fo r Mo nume nt Oil a nd Ga s, te c hnic a l dire c to r fo r Burre n E ne rg y, a nd te c hnic a l a dviso r to Ba yfie ld E ne rg y. Mr. T hurle y g ra dua te d fro m I mpe ria l Co lle g e , L

• ndo n.

Mar k Nor man | Pr

• je c t Dir

e c tor and Ge ne r al Manage r , China Offic e

• Mr. No rma n jo ine d in 2012 a s Pro je c t Dire c to r fo r Prime line ’ s Sha ng ha i o ffic e a nd Vic e Pre side nt in the L

ishui Ope ra ting Co mpa ny - the

• pe ra to r o f the L

S36-1 de ve lo pme nt - a nd in De c e mb e r 2014, he b e c a me Ge ne ra l Ma na g e r o f Prime line ’ s Sha ng ha i Offic e . He ha s o ve r 25 ye a rs’ e xpe rie nc e in pro je c t ma na g e me nt a nd ha s e xpe rtise in the de live ry o f c o mple x pro je c ts in the UK a nd wo rldwide .

29 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Cor por ate Str uc tur e

T ra ding Symb o ls Outsta nding Sha re s F ully Dilute d Sha re s Ba la nc e She e t @ 31/ 06/ 16 Audito r Ma jo r sha re ho lde rs PE H - T SX Ve nture E xc ha ng e 185.4M 189.1M T

• ta l a sse ts C$489m/ Ne t a sse ts C$68m

Pric e Wa te rho use Co o pe rs

• Mr. Vic to r Hwa ng (a ppro x. 67.5%)

F ide lity Wo rld wide (a ppro x. 7%) GE MS (a ppro x. 3%) Ma na g e me nt (a ppro x. 2%)

Contac t

Dr Ming Wa ng Chie f E xe c utive Offic e r ming wa ng @ pe hi.c o m Andre w Big g s Se nio r Vic e Pre side nt a ndre wb ig g s@ pe hi.c o m Stua rt Jo yne r Chie f F ina nc ia l Offic e r stua rtjo yne r@ pe hi.c o m

30 Pr ime line Cor por ate Pr e se ntation - Se pte mbe r 2016

Disc laime r

T his info rma tio n c o nta ins c e rta in fo rwa rd-lo o king sta te me nts within the me a ning o f a pplic a b le se c uritie s la ws. F

• rwa rd -lo o king sta te me nts a re o fte n c ha ra c te rize d b y wo rds suc h a s “pla n”, “e xpe c t”, “pro je c t”,

“inte nd”, “b e lie ve ”, “a ntic ipa te ”, “e stima te ” a nd o the r simila r wo rds, o r sta te me nts tha t c e rta in e ve nts “ma y” o r “will” o c c ur, inc luding witho ut limita tio n sta te me nts re la te d to inte nde d wo rk pro g ra ms a nd a sso c ia te d time line s. F

• rwa rd -lo o king sta te me nts a re b a se d o n the o pinio ns a nd e stima te s o f

ma na g e me nt a t the da te the sta te me nts a re ma de a nd a re sub je c t to a va rie ty o f risks a nd unc e rta intie s a nd o the r fa c to rs tha t c o uld c a use a c tua l e ve nts o r re sults to diffe r ma te ria lly fro m tho se pro je c te d o r a ntic ipa te d in the fo rwa rd -lo o king sta te me nts. Suc h risks a nd unc e rta intie s inc lude the inhe re nt risks invo lve d in the e xplo ra tio n fo r a nd de ve lo pme nt o f c rude o il a nd na tura l g a s o ffsho re , the unc e rta intie s invo lve d in inte rpre ting drilling re sults a nd o the r g e o lo g ic a l a nd g e o physic a l d a ta , fluc tua ting e ne rg y pric e s, the po ssibility o f c o st o ve rruns o r o the r una ntic ipa te d c o sts o r de la ys, the risks a sso c ia te d with ne g o tia ting with fo re ig n g o ve rnme nts a nd c o untry risk a sso c ia te d with c o nduc ting o pe ra tio ns in the Pe o ple ’ s Re pub lic

• f China a nd o the r fa c to rs, ma ny o f whic h a re b e yo nd the c o ntro l o f Prime line E

ne rg y Ho lding s I nc . (“Prime line ”). Prime line c a nno t a nd d o e s no t a ssure tha t a c tua l re sults will b e c o nsiste nt with suc h fo rwa rd - lo o king sta te me nts. F

• rwa rd-lo o king sta te me nts a re ma de a s a t the da te o f pre pa ra tio n o f this

pre se nta tio n a nd a re sub je c t to c ha ng e . Prime line a ssume s no o b lig a tio n to re vise o r upda te the m to re fle c t ne w c irc umsta nc e s, e xc e pt a s re q uire d b y la w. Pro spe c tive inve sto rs sho uld no t pla c e undue re lia nc e o n fo rwa rd-lo o king sta te me nts.