Primeline Energy Holdings Inc. July 2015 Primeline Corporate - - PowerPoint PPT Presentation

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Primeline Energy Holdings Inc. July 2015 Primeline Corporate - - PowerPoint PPT Presentation

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Primeline Energy Holdings Inc. July 2015 Primeline Corporate Presentation 1 July 2015 Building a leading Pan Asia/Pacific oil and gas company 1. T SX- V liste d E &P China g as play with c le an ba lanc e she e t a nd str ong mana g

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1

Primeline Corporate Presentation July 2015

Primeline Energy Holdings Inc. July 2015

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Primeline Corporate Presentation July 2015

Building a leading Pan Asia/Pacific oil and gas company

1. T SX- V liste d E &P China g as play with c le an ba lanc e she e t a nd str

  • ng

mana g e me nt te am. Ye ar e nde d Mar 31 2015 c ash flow fr

  • m L

S36- 1 of CAD$53

  • million. E

xpe c te d E BIT DA of CAD$80 million ne t to PE H* in 2015. 2. Me r ge rs with Pr ime line Pe tr

  • le um Cor

poration a nd L

  • yz E

ne rgy e xpe c te d to c omple te by e nd- 2015 to c r e ate a le ading Pan- Asia/ Pac ific E &P c ompany. 3. E nlarge d c ompa ny has pr

  • duc tion in China a nd T

haila nd a nd e xploration upside in both c ountr ie s, Austr alia, the Philippine s and Ne w Ze aland. 4. $700m+ r e g iona l pr

  • duc tion infrastr

uc tur e hub in E ast China Se a in pa r tne r ship with CNOOC has se c ur e d ac c e ss to the high pr ic e pr

  • vinc iql gas mar

ke t. 5. 2015+ plan to mone tise 1T CF + of hig h mar g in hydr

  • c a rbon upside in the fie ld

and in our 5,877 km 2 e xplor ation c onc e ssion.

*pr

  • -fo r

ma po st PPC ac quisitio n

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Primeline Corporate Presentation July 2015

Structure and assets

  • PE

H has a nnounc e d pla ns to ac quir e its affiliate Prime line Pe tr

  • le um Cor

poration (“PPC”). PPC is 100% c ontr

  • lle d by Vic tor

Hwa ng, PE H Cha ir ma n/ major ity shar e holde r. T he tr ansac tion is e xpe c te d to c omple te on July 30th.

  • PE

H has 75% a nd PPC has 25% of Contr ac tor s’ Rig hts in 2 Pe tr

  • le um Contr

ac ts in the E ast China Se a:

  • Bloc k 25/ 34: L

S36- 1 g a s fie ld (85 km 2); Ope ra tor : CNOOC (51% ), PE H/ PPC (49% ). 2015 Mc Da nie l Pr

  • ve d + Pr
  • ba ble (2P) r

e se r ve s e stimate s of 13.2 Mmboe (Gas: 61.3 bc f, L iquids: 3.0 MMbbl).

  • Bloc k 33/ 07: 7 ye ar

e xploration pe riod of thre e pha se s (3, 2, 2 ye a r s) fr

  • m Nov

2012 (5,877 km 2). Ope rator : PE H/ PPC (100% ). 600 km 2 of 3D in 2014 a nd 2 we lls planne d immine ntly.

  • Contr

a c tor s r e sponsible for 100% of e xploration c osts. CNOOC ha s r ight to pa r tic ipate up to 51% inany c omme r c ial de ve lopme nt by paying pr

  • rata

de ve lopme nt/ ope r ation c osts.

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Primeline Corporate Presentation July 2015

East China gas market - High growth, high price

  • China’s dyna mic e c onomic g r
  • wth in the past 25 ye ar

s has c r e ate d the wor ld’s 2nd lar ge st e ne r gy mar ke t.

  • China’s c ur

r e nt e ne r g y ne e ds ar e me t mostly by c oal a nd oil (58% of the latte r is impor te d) and, insignific antly, by gas at just 5 % of total e ne r gy mix.

  • Inc r

e ase d g as utilisation has be c ome a foc us of Chine se gove rnme nt e ne rgy polic y.

  • Muc h of the r

a pid inc r e ase in g as de ma nd in E ast China is now me t by impor ts via L NG and long distanc e pipe line s.

  • Gas pric e s in E

ast China ar e str

  • ng a nd r

e fle c t the influe nc e of the F ar E ast L NG pr ic e and its position as the most populous/ de ve lope d par t of China.

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Primeline Corporate Presentation July 2015

Access to Zhejiang gas grid

  • L

S36- 1 is a str ate gic gas fie ld c lose to Zhe jiang Pr

  • vinc e -

population of 50 million

  • 4th lar

ge st e c onomy in China.

  • Cur

r e nt Zhe jiang gas gr id usage is at ~6.6 bc mpa (has double d in just 4 ye ar s).

  • But gas is only 2.8%
  • f total e ne r

gy mix.

Ningbo L NG

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Primeline Corporate Presentation July 2015

East China Sea becoming a significant gas production basin

  • Pr
  • ve n pe tr
  • le um pr
  • vinc e .
  • Ne w E

&P foc us in Xihu T r

  • ugh

(Basin) in nor the r n E ast China Se a, anc hor e d on two e xisting fie lds:

–

Pinghu F ie ld: onstr e am in 1998, 386 km 14” pipe line to Shangha i te r minal; and

–

Chunxiao F ie ld: onstr e am in 2006, 360 km 28” pipe line to Ningbo and 4 pr

  • duc tion platfor

ms. E xpansion de ve lopme nt unde r way.

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Primeline Corporate Presentation July 2015

LS36-1: Infrastructure hub is completed

  • Platfor

m fac ility

  • 4 de ve lopme nt we lls
  • Subse a pipe line :

126.9km to onshor e te r minal

  • Sale gas pipe line : 32

km - to gr id

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Primeline Corporate Presentation July 2015

Valuation has not yet reflected impressive operational progress

De v. Ag re e me nt F a b ric a tio n Ja c ke t insta lle d De v. Drilling c o mple te d ODP a ppro ve d Pro duc tio n sta rte d

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Primeline Corporate Presentation July 2015

  • De ve lopme nt

c omple te d for L S36- 1 gas fie ld, se c ur e d mar ke t ac c e ss and built r e gional pr

  • duc tion

infr astr uc tur e hub.

  • F

ar m- out unde r way for high impac t e xplor ation in the imme diate vic inity and the r e st of the Bloc k anc hor e d ar

  • und the

pr

  • duc ing L

S36- 1 fac ility.

Strategy leverages infrastructure hub to monetize upside

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

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Primeline Corporate Presentation July 2015

High margin resource additions from both our blocks

  • 2015+ plan to mone tise 1T

CF plus of high margin hydr

  • c arbon upside in the

fie ld and in our 5,877 km 2 e xplor ation c onc e ssion.

  • Substantial possible r

e se r ve s a nd prospe c tive r e sour c e s in the fie ld itse lf, thr

  • ugh “phase 2 de ve lopme nt dr

illing”.

  • Sig nific a nt pote ntia l in ne arby pr
  • spe c ts that have be e n de fine d by 1300 sq.

km plus of 3D se ismic data.

  • Additional hydr
  • c a rbon pote ntia l suppor

te d by e xisting 2D se ismic e valuation along the tr e nd to nor th adds 2- 4 time s mor e gas pote ntial in same play type .

  • Se ve n re g ional we lls in a nd a r
  • und the basin ha ve hydr
  • c a rbon shows or

flows.

  • F

ar m out pr

  • c e ss unde r

way with funding se t to c omple te for 2 additional we lls to be dr ille d immine ntly.

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Primeline Corporate Presentation July 2015

Prospective resources of 1.4TCF (McDaniel)

Pro spe c tive Re so urc e s - Na tura l Ga s 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 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 2,725 5,513 6,370 11,087 4,644 73 L S36-1 Pa le o c e ne -M1-1 So uth 1,759 3,965 4,779 8,931 3,484 73 L S36-1 Pa le o c e ne -M2 5,046 14,464 18,934 38,513 11,360 60 L S36-1 Pa le o c e ne -M3 14,187 31,725 37,210 67,032 26,047 70 L S36-1 Pa le o c e ne -L 1 8,351 23,772 32,862 69,109 16,431 50 L S36-1 Pa le o c e ne -L 2 2,379 5,363 6,444 11,822 2,577 40 L S30-8 Pa le o c e ne -M2 9,136 27,070 36,195 73,148 7,601 21 L S36- 1 De ve lopme nt Are a (Sub tota l) 43,584 111,871 142,794 279,641 72,145 L S30-3 Pa le o c e ne -M1-1 14,631 32,007 38,820 71,810 10,870 28 L S30-3 Pa le o c e ne -M1-2 43,387 178,831 315,221 727,991 88,262 28 L S29-2 Pa le o c e ne -M1-2 19,016 47,306 60,442 117,561 14,506 24 L S29-3 Pa le o c e ne -M1-2 7,090 22,601 32,984 70,620 7,124 22 L S35-1 Pa le o c e ne -M1-2 14,592 38,521 51,441 105,723 7,407 14

Bloc k 33/ 07 3D Se ismic Ar e a (Sub tota l) 98,715 319,266 498,907 1,093,706 128,170 T

  • ta l (3)

142,299 431,137 641,701 1,373,347 200,314

(1) T he re is no c e rta inty tha t a ny po rtio n o f the pro spe c tive re so urc e s will b e disc o ve re d. I f disc o ve re d, the re is no c e rta inty tha t it will b e e c o no mic a lly via b le o r te c hnic a lly fe a sib le to pro duc e a ny po rtio n o f the re so urc e s. (2) T he se a re pa rtia lly riske d pro spe c tive re so urc e s tha t ha ve b e e n riske d fo r c ha nc e o f disc o ve ry, b ut ha ve no t b e e n riske d fo r c ha nc e o f de ve lo pme nt. (3)T

  • ta l b a se d o n a n a rithme tic a g g re g a tio n o f a ll the Pro spe c t/ Zo ne s a nd a s suc h the re is >90 % c ha nc e o f e xc e e ding

the o ve ra ll L

  • w T
  • ta l a nd <10 % c ha nc e o f e xc e e ding the o ve ra ll Hig h T
  • ta l.
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Primeline Corporate Presentation July 2015

Additional resources in lower zones

  • Cur

r e nt Pr

  • duc e r

s ar e in M1- 1 an M1- 2 sands.

  • Additional gas in othe r

sands and in lowe r tight r e se r voir s.

M11 M12 M2 M31 M32 L1 L2

Cross-section of LS36-1

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Primeline Corporate Presentation July 2015

Reserve additions via Phase 2 drilling from platform

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

  • 8 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
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Primeline Corporate Presentation July 2015

M10 untested sand

  • De signe d as de viate d we ll

tar ge te d to thic k M10 se c tion.

  • We ll pe ne tr

ate s e ntir e M10 str atigr aphic se c tion.

  • M10 GIIP c alc ulate s with

Pr

  • spe c t Range of:

P90: 6.8 P50: 13.3 P10: 26.0 Bc f

LS36-1 M10 Top M10 3D Horizon Shaded to show M10 Isochore Isochore Thickness

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Primeline Corporate Presentation July 2015

LS36-1 field and nearby prospects

  • Ne w 600 sq. km 3D se ismic in

2014 e xpande d the c ove r age in the gas play – ac quisition and pr

  • c e ssing

c omple te d and; inte r pr e tation in pr

  • gr

e ss.

  • Additional 3D se ismic may

be r e quir e d for the r e mainde r

  • f the Bloc k

whe r e we have ide ntifie d g as le a ds thr

  • ugh 2D se ismic ;

and to c ove r the oil play pr

  • spe c ts in the e aste r

n par t.

  • E

xplor ation dr illing in 2015 afte r inte r pr e tation of ne w 3D se ismic .

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Primeline Corporate Presentation July 2015

Lishui gas play tiebacks – 2006 3D seismic area

LS35-1 LS30-3 LS29-2 LS35-3

LS30-3-1 LS35-3-1 Discovery LS36-1 Platform

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Primeline Corporate Presentation July 2015

  • Phase 1 of L

S36- 1 ge ne r ate s annualise d E BIT DA of c ir c a CAD$80m.

  • Se lling into one of the ke y pr
  • vinic ia l e c onomie s in China – one of the hig he st

gas pr ic e r e gions in the wor ld.

  • L
  • ng te r

m c lose r e lationship with CNOOC.

  • Manage me nt with pr
  • ve n tr

ac k r e c or d & ope r ational e xpe r tise .

  • One of the ve r

y fe w offshor e g as de ve lopme nts in China - with a wor ld c lass $700m+ infr astr uc tur e hub.

  • Sig nific a nt c ata lysts for

2015 and be yond - 5,877 km 2 c onc e ssion with T CF plus

  • f upside e xplor

ation pote ntia l to sha r e infrastr uc tur e and 2 we lls e xpe c te d in 2015.

  • Me r

ge rs with Pr ime line Pe tr

  • le um Cor

poration and L

  • yz E

ne rgy e xpe c te d to c omple te by e nd- 2015 to c r e ate a le ading Pan- Asia/ Pac ific E &P c ompany.

Valuation reflects neither progress to date nor upside potential

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Primeline Corporate Presentation July 2015

Appendices

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

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Primeline Corporate Presentation July 2015

LS36-1: Development schedule

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

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Primeline Corporate Presentation July 2015

LS36-1: Development milestones

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 No ve mb e r 2010 E ng ine e ring de sig n c o mme nc e d July 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 wdo wn

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Primeline Corporate Presentation July 2015

Ja c ke t I nsta lla tio n July 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

Development in images

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Primeline Corporate Presentation July 2015

Onshore Processing Terminal – in operation

Sto ra g e CO2 Pro c e ssing Ga s Pro c e ssing Slug Ca tc he r Ope ra tio n & F ire -fig hting Ce ntra l Co ntro l Burne r L

  • a ding

Zo ne Offic e & L iving L a b

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Primeline Corporate Presentation July 2015

LS36-1: Wells

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)
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Primeline Corporate Presentation July 2015

LS36-1: Production well design

A3 A5 A2H A1M

  • Horizonta l a nd Multi- L

a te ra l Ga s Produc tion we lls inc re a se pote ntia l g a s ra te s, e spe c ia lly in tig ht g a s re se rvoirs, a nd inc re a se e ffe c tive dra ina g e a re a .

  • A3 drille d a s a Ve rtic a l we ll to a llow

e va lua tion of de e pe r inte rva ls. Comple te d ove r M1- 2 inte rva l.

  • A1M drille d a s 3 bra nc h

Multi- L a te ra l we ll in M1- 1.

  • A2H drille d a s 2 bra nc h

Multi- L a te ra l we ll in M1- 2.

  • A5 drille d a s De via te d we ll to M1- 1

re se rvoir.

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Primeline Corporate Presentation July 2015

Board of Directors

Victor Hwang | Chairman and President

  • Mr. Hwa ng is 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, shipping tra nspo rta tio n 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 the Ba tte rse a Po we r Sta tio n site in Ce ntra l L

  • nd o n fo r £400M (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 | Director and CEO

(se e Ma na g e me nt a nd T e c hnic a l T e a m slide )

Brian Chan | Director

  • 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 . I

n a d ditio n, Mr. Cha n 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. He is a Ce rtifie d Ac c o unta nt.

Alan Johnson | Non-Executive Director

  • Mr. Jo hnso n ha s o ve r 30 ye a rs’ o il industry e xpe rie nc e with va rio us c o mpa nie s 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 fo r Gle nc o re wo rld wide , 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 .

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Primeline Corporate Presentation July 2015

Board of Directors

Peter Kelty | Non-Executive Director

  • 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

  • f the I

llino is Sta te Ba r. He ho lds a Ma ste rs de g re e 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 .

Yunshi Cao | Non-Executive Director

  • Mr. Ca o ha s o ve r 30 ye a rs’ o il industry e xpe rie nc e in China ha ving re tire d fro m CNOOC whe re he wa s

Ge ne ra l Co unse l, Co mpa ny Se c re ta ry a nd Se nio r Vic e Pre side nt. Mr. Ca o wa s c lo se ly invo lve d I n the listing

  • f CNOOC L

td., its sub se q ue nt o pe ra tio ns a nd fund ra ising s.

Vincent Lien | Non-Executive Director

  • Mr. L

ie n ha s o ve r 20 ye a rs’ e xpe rie nc e in the b a nking industry, 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 Ho ng K

  • ng , the PRC, Sing a po re a nd So uth-e a st Asia . Mr. L

ie n he ld va rio us se nio r po sitio ns a t ma jo r multina tio na l b a nking institutio ns inc luding Swiss Ba nk, Ba nke rs T rust a nd ABN AMRO. Mr. L ie n 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 a nd F

  • c us Me dia Ne two rk L

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

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Primeline Corporate Presentation July 2015

Management & Technical Team

Ming Wang | Director and CEO

  • Dr. Wa ng He jo ine d Prime line in 1994 a nd wa s a ppo inte d a s Vic e Pre side nt o f E

xplo ra tio n in De c e mb e r 1996. 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 luding the suc c e ssful drilling o pe ra tio n o f the L S36-1-1 disc o ve ry we ll. Dr. Wa ng wa s a ppo inte d CE O in 2006. 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.

Stuart Joyner | Chief Financial Officer

  • 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 21 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 fo r 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 Mo rg a n Sta nle y, Dre sdne r K le inwo rt a nd Na tWe st Se c uritie s. He wa s hig hly ra nke d a s a n a na lyst a nd spe c ia list sa le spe rso n in the E xte l a nd I nstitutio na l I nve sto r surve ys. He ho lds the ACCA Diplo ma in Ac c o unting a nd Fina nc e a nd g ra dua te d with 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.

Andrew Biggs | Senior Vice President and General Counsel

  • Mr. Big g s jo ine d in 2007 a s Ge ne ra l Co unse l o f Prime line a nd in suc h c a pa c ity he ha s o ve rse e n a ll le g a l

a spe c ts o f Prime line ’ s o pe ra tio ns. 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 .
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Primeline Corporate Presentation July 2015

Management & Technical Team

Alan Soulsby | Technical Director

  • Mr. So ulsb y jo ine d a s T

e c hnic a l Dire c to r in 1994 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 d ua te d fro m Oxfo rd Unive rsity with a d e g re e in Physic s in 1970 fo llo we d b y a Ma ste rs in Ge o physic s.

Brian Thurley | E & P Coordinator

  • Mr. T

hurle y jo ine d Prime line 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 pro 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.

Mark Norman | Project Director and General Manager, China Office

  • Mr. No rma n jo ine d Prime line 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 o pe ra to r o f the L S36-1 de ve lo pme nt - a nd in July 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 .

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SLIDE 29

29

Primeline Corporate Presentation July 2015

Corporate Structure

T ra ding Symb o ls Outsta nding Sha re s F ully Dilute d Sha re s F ully Dilute d Pro c e e ds Ba la nc e She e t @ 31/ 3/ 15 Audito r Ma jo r sha re ho lde rs PE H - T SX Ve nture E xc ha ng e 134.0M 145.1M 7.2M (C$) C$0.67 a ve ra g e strike pric e T

  • ta l a sse ts C$392.0m/ Ne t a sse ts C$91.6m

Pric e Wa te rho use Co o pe rs L L P

  • Mr. Vic to r Hwa ng (a ppro x. 60%)

F ide lity Wo rld wide (a ppro x. 10%) Ma na g e me nt (a ppro x. 2.5%)

Contact

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

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SLIDE 30

30

Primeline Corporate Presentation July 2015

Disclaimer

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.