Primeline Energy Holdings Inc. announced 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 2,666 m 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.