Rig: HAI YANG SHI YOU 941

Primeline Completes LS30-3-1 Well

Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that drilling operations of the LS30-3-1 well have been completed without discovering hydrocarbons LS30-3-1 is located approximately 20km north of the LS36-1 gas field platform and was targeting a large channel sand prospect as part of Primeline’s two well exploration drilling programme for 2015. The well spudded on November 13. When the well reached the planned total depth of 1800m, Primeline decided to deepen the well, drilling to a total depth of 2000m on November 27 with electronic log data being collected during November 27-30. The analysis of the results shows that whilst the well encountered three sets of very good sandstone reservoir sequences as predicted, unfortunately there was no oil or gas accumulation in those sandstones. The LS30-3-1 has thus been declared as a dry well and the plug and abandon operation is now ongoing before the rig is released. Primeline will conduct a careful post well evaluation of the results of the LS23-1-1 and LS30-3-1 wells in the coming months in order to formulate the next stage of the exploration programme in the remainder of the 5,877sq km of Block 33/07.

Primeline Commenced Drilling Of LS30-3-1 Well

Primeline Energy Holdings Inc. today announces that it has commenced the drilling operations of the LS30-3-1 well. Following the plug and abandon operation of LS23-1-1 announced on October 28, Primeline’s contractor, China Oilfield Service Ltd. (“COSL”), towed the rig HYSY 941 to theLS30-3-1 location on November 4 and successfully jacked up the rig on location on November 7. COSL subsequently completed all the necessary preparation work and Primeline obtained the operation licence. LS30-3-1 well was then spudded on November 13 and drilling is ongoing. LS30-3-1 is located approximately 20km north of the LS36-1 gasfield platform and is targeting a large channel sand prospect. The planned total depth of the well is 1,800m, targeting the same reservoir as that of the LS36-1 gasfield. The drilling time is anticipated to be around 25 days. The drilling of LS30-3-1 is part of the 2 well exploration drilling programme by Primeline in 2015 as part of the rolling development programme anchored on the LS36-1 production.

Primeline Completes LS23-1-1 Well and Will Continue with Drilling of LS30-3-1 Well

Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announces that it has completed the drilling operations of the LS23-1-1 well and will now continue with the exploration drilling programme for the LS30-3-1 well. The LS23-1-1 well was spudded on September 23 and reached total depth (TD) of 2,666m on October 21, 2015 and wireline logging data was subsequently acquired. The well encountered sandstone units of Paleocene and early Cretaceous age, drilling through the geological sequence as anticipated and finished in basement rock. It discovered several zones of gas bearing sandstone and evaluation of logging data indicated total cumulative net pay thickness of 14 metres. The LS23-1 prospect is a technical discovery of hydrocarbon but not likely to be a commercial discovery. Therefore Primeline has plugged and abandoned the well and will proceed with the drilling of the LS30-3-1 well on the basis of the agreed two well work programme. LS30-3-1 is located approximately 20km north of the LS36-1 gasfield platform and is targeting a large channel sand prospect. The prospect was originally mapped in 2009/2010 and refined during the 2014/2015 evaluation. The planned TD of the well is 1,800m, targeting the same reservoir as that of the LS36-1 gasfield. The drilling rig HYSY941 is currently conducting the final operations for the LS23-1-1 well. Once completed, Primeline’s contractor China Oilfield Service Ltd plans to mobilise the rig to the LS30-3-1 location subject to weather and sea conditions, allowance for necessary equipment maintenance and preparation and approval of the operation licence. A separate announcement will be made when the drilling operation of LS30-3-1 commences.

Primeline Spuds LS23-1-1 Well

Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced the drilling of its LS23-1-1 exploration well has commenced to tap into resources near its LS36-1 gas field production facility. As recently announced, Primeline’s drilling contractor China Oilfield Services Ltd started to tow the drilling rig, HYSY941, on September 15. The rig arrived at LS23-1-1 on September 17 and the subsequent jackup and loading operation was successfully completed. LS23-1-1 was spudded on September 23, 2015. The LS23-1-1 well is in 81 m of water in Block 33/07 in the East China Sea and is 24 km from the LS36-1 gas field platform. The planned total depth of the well is designed to be 2,688 m with several target zones in Palaeocene sediments. The drilling is scheduled to take approximately 30 days including logging. If hydrocarbons are discovered, additional logging or drill stem tests will be carried out. LS23-1-1 is the first exploration well (of two) in Primeline’s current campaign as part of the rolling development program. Based on the result of this well, Primeline will finalize the drilling location of the second well in Block 33/07, which will be either LS30-3-1 or LS23-2-1. Any resources discovered in this drilling campaign can use or share the LS36-1 gas field production infrastructure to speed up development and optimize future development costs and economics.

Primelione spuds LS23-1-1 well in China

Primeline Energy Holdings Inc. (“Primeline”) has announced that the drilling of the LS23-1-1 exploration well has commenced to tap into resources near its LS36-1 gas field production facility. As recently announced, Primeline’s drilling contractor China Oilfield Services Ltd (“COSL”) started to tow the drilling rig, HYSY941, on September 15th 2015. The rig arrived at LS23-1-1 on September 17th 2015 and the subsequent jackup and loading operation was successfully completed. LS23-1-1 was spudded on September 23rd, 2015. The LS23-1-1 well is in 81 m of water in Block 33/07 in the East China Sea and is 24 km from the LS36-1 gas field platform. The planned total depth of the well is designed to be 2,688 m with several target zones in Palaeocene sediments. The drilling is scheduled to take approximately 30 days including logging. If hydrocarbons are discovered, additional logging or drill stem tests will be carried out.

Primeline mobilises jackup rig for drilling of LS23-1-1 well in China

Primeline Energy Holdings Inc. (“Primeline”) today announced that its drilling contractor China Oilfield Service Ltd. (“COSL”) has started the mobilisation of the rig for the drilling operation of LS23-1-1 well. Following the signing of the drilling contract by Primeline with COSL as announced on August 17th, 2015, COSL has completed the site survey of the well locations and other preparations for the drilling operations, including the applications for the required operation permits. Primeline held a pre-spud meeting with COSL and all main subcontractors on September 14th. COSL started to tow drilling rig HYSY941 toward the well LS23-1-1 location on the evening of September 15th. The towing operation is expected to last three to five days, subject to weather and sea conditions, followed by jack up, with drilling operations expected to commence around September 22nd.

Primeline Energy to drill two wells utilising 'HAI YANG SHI YOU 941' jackup

Primeline Energy Holdings Inc. (“Primeline”) today announced that it has entered into a turnkey drilling contract with China Oilfield Service Ltd. (“COSL!) for its 2015 exploration programme of two wells in Block 33/07 in the East China Sea. Primeline signed a letter of intent with COSL on 22nd July with regards to the drilling work, and has since negotiated the formal drilling contract with COSL which was entered into on 14th August and under which the drilling operations will now proceed. Under the terms of the drilling contract, COSL has agreed to drill two wells for Primeline on a turnkey basis to the depth and target zone specified by Primeline. If hydrocarbons are discovered, COSL will also conduct tests for Primeline either on a turnkey basis or as a day rate operation as selected by Primeline. Primeline has decided to drill LS23-1-1 as the first well and, depending on the results, will then drill either location LS23-2-1 or LS30-3-1 as the second well. Primeline has the option to suspend operations after the first well if it is necessary to spend additional time carrying out any studies necessary before drilling the second well in order to ensure it is drilled in the optimal location. This two well drilling campaign is part of the rolling development programme Primeline and CNOOC are implementing in the southern part of East China Sea following the completion of development of LS36-1 gas field. Now that LS36-1 gas field is in production, thereby establishing a production hub and access to market, Primeline intends to speed up the exploration programme in order to discover more resources in the nearby area to capitalize the infrastructure and access to market. Any additional resources that are discovered in the area nearby LS36-1 in Block 33/07 can share the infrastructure so any future incremental development will be quick and cost effective. According to COSL’s current planning, LS23-1-1 is scheduled to be spudded around the middle of September 2015 using drilling rig HYSY941. An update will be announced when the drilling operations commence.