Primeline Energy Holdings Inc has received confirmation that the credit committee of China Development Bank (CDB) has approved in principle the project finance facility to be made available by CDB to the Company for the development of the LS36-1 gas field (Development).

As announced by Primeline on November 8, 2012, Primeline Energy China Limited (PECL), a 100% subsidiary of the Company, Primeline Petroleum Corporation ("PPC"), a company wholly owned by the Company's chairman and controlling shareholder Mr. Victor Hwang, and CDB previously entered into a loan memorandum ("Loan Memorandum") setting out the terms of a loan facility for PECL and PPC's share of the costs of the Development.

The Loan Memorandum was subject to the approval of CDB's credit committee and Primeline has now been informed that the CDB credit committee has approved in principle the granting of the loan of US$300 million substantially on the terms of the Loan Memorandum, subject to concluding arrangements with Primeline for security before the Development reaches the design production level specified in the Overall Development Program ("ODP") in addition to that provided for in the Loan Memorandum.

Tags: Primeline Energy Holdings Inc.