Primeline Energy Holdings Inc. 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, 2015 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.