CCL Shuts Down Production at LS 36-1

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HONG KONG, June 03, 2021 (GLOBE NEWSWIRE) — ‎Primeline Energy Holdings Inc. (“Primeline” or the “Company”) announces that CNOOC China Ltd. (“CCL”), the operator of the LS 36-1 Gas Field, has shut down production from LS 36-1 as of May 31, 2021, as it had previously informed Primeline it would do, and which Primeline disclosed in its press release of March 10, 2021.

Primeline confirms that, other than as disclosed in prior press releases, there have been no ‎material business developments since its press release of August 21, 2020 and the filing on February ‎‎13, 2020 of the Company’s latest interim financial report for the period ended December 31, 2019.‎

ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.

Signed “Andrew Biggs”
Chief Executive Officer

Please visit the Company’s website at www.primelineenergy.com.

Some of the statements in this news release contain forward-looking information, which involves inherent risk and ‎uncertainty affecting ‎the business of Primeline. These statements relate to Primeline’s ability to continue operations. Although these ‎statements are based on assumptions management believes to be reasonable, actual ‎results may vary from those ‎anticipated in such statements. CCL has shut down production at the LS 36-1 Gas Field, and suspended performance of its obligations under the Petroleum Contract, relating to LS 36-1. Primeline therefore has no potential source of future revenue, and may be unable to continue operations. The syndicate of banks which provided finance for Primeline’s share of the LS 36-1 development may realize on its security interest over Primeline’s interest ‎in LS ‎‎36-1, and if it does that will result in the seizure of all of Primeline’s material assets, in which event ‎Primeline will ‎be unable to continue operations. Primeline may be unsuccessful in its application to set aside the award previously made in its arbitration with CNOOC and CL, and if it is Primeline will be unable to continue operations. Primeline assumes no ‎obligation to update forward-looking information, except as required by law. ‎Exploration for oil and gas is subject to ‎the inherent risk that it will not result in a commercial discovery.‎

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.