OREANDA-NEWS.  November 11, 2014. A high impact offshore exploration program in China earmarked for next year.

China National Offshore Oil Corp (CNOOC) (HKG:0883) (market cap. AUD80 billion) is the operator with 51%, with Primeline Energy Holdings (CVE:PHE) holding a 36.75% stake.

The LS36-1 gas field lies in the East China Sea and final government approval was received in May to begin production. It is already tied into the Zhejiang provincial gas grid.

Trial production has shown positive results and the final gas sales contract has been agreed, notes the broker.

Broker VSA said LS36-1 has a large number of analogous prospects nearby, adding that 2P reserve estimates have been put at 14.5 million barrels of oil equivalent and unrisked prospective resources at 110mboe in the remainder of the gas field and in the area.

Primeline has confirmed it is in very advanced negotiations with China Development Bank for around a USD220 million loan to fulfil its share of the project costs.