COSL Completes 3D Seismic Survey in Block 33/07 in East China Sea

China-focused Primeline Energy Holdings Inc. (Primeline or the Company) reported Monday that its contractor, China Oilfield Services Ltd. (COSL), has completed the 3D seismic survey of 231 square miles (600 square kilometers) in Block 33/07, East China Sea announced by Primeline March 31.

The survey commenced March 31 and as the weather and sea conditions were good, COSL was able to complete the survey ahead of the planned schedule and the final line was shot May 2. The data will now be shipped to COSL’s processing center and it is estimated that processing will commence around mid-May. The processing will take about 4-5 months and will allow Primeline to merge the new data with the existing 3D seismic data for interpretation in 3Q 2014.

Primeline has existing 3D seismic data covering the LS36-1 gas field development and its immediately surrounding prospects. The 231 square miles (600 square kilometers) area surveyed by COSL is located to the north of and adjacent to the existing 3D seismic data area. The new survey is intended to provide better definition of the prospects and leads that have previously been identified in the survey area using 2D data, in order to generate more drillable prospects.

In the meantime, the LS36-1 gas field development is progressing well with CNOOC Limited, as operator, working on the final connection to allow the production to commence soon. Based on current information from CNOOC, the target for first gas remains sometime in 3Q 2014.


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