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3/8/2010 - PRIMELINE TAPS COSL FOR DRILLING SERVICES ON LS36-1 FIELD |
| Primeline Energy Holdings Inc. entered into a turnkey drilling contract for its step out exploration well in the vicinity of the LS36-1 field as part of its rolling development and exploration program. In February 2010, Primeline signed a Letter of Intent with China Oilfield Services Ltd. (COSL) under which COSL agreed to drill LS35-3-1 well on a turnkey basis for Primeline. Primeline has now concluded the detailed negotiations and, on March 5, 2010, entered into the turnkey drilling contract with COSL.
Under the turnkey drilling contract, COSL will drill the LS35-3-1 well in Block 25/34 using a jackup rig, COSL 942, once the rig is released from its current contract, which is expected to be sometime between the beginning of April to late May 2010. COSL will supply all necessary equipment, services and personnel for the drilling.
Based on the turnkey contract, the cost of the well, in a success case, is expected to be approximately $25 million depending on the level of testing required. |
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