(MENAFN- ProactiveInvestors)Primeline Energy (CVE:PEH) remains positive on the longer-term fundamentals of the Chinese gas market as it posted a loss in its latest quarter. The energy producer and explorer noted the underlying growth prospects of the Chinese market even in the context of the country's widely reported lower short-term economic growth. "With the further development of regional and local gas grids Primeline believes gas consumption will continue to expand in China particularly in East China and that current surplus capacity will be quickly absorbed by the anticipated growth" it said in the results statement. For the three months to September 30 the group reported a loss of RMB76.5mln or C$16.1mln compared to a gain of RMB289419 (around C$60000) in the same period last year. This loss was mainly due to translation effects on the US$ denominated syndicate facility along with lower than expected oil and gas sale revenues due to the "significant" decline in off take volumes by Zhejiang Gas in the quarter the firm told investors. As of September 30 Primeline held cash of around RMB298mln or C$63mln including RMB150mln or C$31.7mln. Earlier this month the firm told investors that drilling was now underway at the LS30-3-1 well offshore China. It was the second of the two exploration wells planned for this year and it aims to find more gas resources for the expansion of the group's nearby production operation. It is targeting a large channel sand prospect and it will be drilled down to a depth of around 1800 metres in work anticipated to last for 25 days.
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