About SINO OIL & GAS Company

SINO OIL AND GAS HOLDINGS LIMITED (SINO OIL AND GAS HOLDINGS LIMITED) was listed on the main board of the Hong Kong Stock Exchange in February 2000 under the stock code 0702.HK, and has been a constituent stock of the Morgan Stanley SME Index since 2009. China Oil & Gas Holdings Co., Ltd. and its subsidiaries (the “Group” for short) are the core strategy of developing the oil and gas business on a global scale. Since 2007, the Group has successfully operated many oil and gas projects at home and abroad, accumulated certain operating experience in the oil and gas industry, continued to grow the Group's management team and expert team during this period, and actively introduced operators and investors with deep experience in the energy industry. At this stage, the Group's main business is exploration and extraction of natural gas and petroleum. It is mainly engaged in unconventional natural gas exploration and development, mainly coalbed methane extraction, while extending the business to the middle and downstream of the industrial chain as appropriate. The main investment areas include the eastern edge of the Ordos Basin and the Qinshui Basin, which is the most representative coalbed methane production base in China. In the future, the Group aims to develop into a leading private unconventional natural gas producer among Hong Kong listed companies. Currently, the Group's core business is to explore, mine and produce coalbed methane in the Sanjiao block of Shanxi and Shaanxi Province, China through cooperation between its wholly-owned subsidiary Orion Energy International Co., Ltd. (“Orient”) and CNPC (“CNPC”). The partners signed a product sharing contract (“PSC”) in 2010, and the Group enjoyed 70% of the rights in this project. The “Sanjiao Coalbed Methane Project” is one of the key development projects in the “12th Five-Year Plan for the Development and Utilization of Coalbed Methane (Coal Mine Gas)” issued by the National Development and Reform Commission (“NDRC”) in 2011. In 2014, the Group's coalbed methane business increased to more than 80%, obtained landmark results in coalbed methane exploration and development, and achieved a significant increase in coalbed methane sales revenue. The overall development plan (“ODP”) for the Sanjiao coalbed methane project submitted to the National Energy Administration (“National Energy Administration”) of the National Development and Reform Commission was officially approved by the National Development and Reform Commission in November 2015. Based on this, the Development and Reform Commission officially agreed to build the Sanjiao coalbed methane foreign cooperation project. The approval indicates that the Sanjiao coalbed methane project will be built according to ODP and will soon enter the large-scale development and production stage with an annual production capacity of 0.5 billion cubic meters. Additionally, the Group operates three oil field businesses in the Ordos Basin in Shaanxi Province, including the Jinzhuang Oilfield, Liuluoyu and Yanjiawan Oilfields. Among them, the Liuluoyu and Yanjiawan oil fields have 1P and 2P crude oil reserves of 3.83 million tons; the total area of the Jinzhuang oil and gas field is 66 square kilometers. In September 2011, it was proved that the oil reserves were 4.16 million tons, and huge strata of natural gas were discovered in 2011. Currently, the Group is discussing cooperative development of natural gas resources in the Jinzhuang Oil and Gas Field with Shaanxi Yanchang Petroleum (Group) Co., Ltd., hoping to further enhance the Group's resource allocation. In the future, the Group will continue to cooperate with state-owned oil and gas companies to integrate and acquire foreign cooperation blocks, while increasing exploration and development efforts in foreign oil and gas fields, preferring oil and gas blocks with a high degree of exploration and commercialization, and is committed to becoming a leading international oil and gas exploration and developer.