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. The stock code is 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) have as their core strategy the development of oil and gas business on a global scale. Since 2007, the Group has successfully operated a number of oil and gas projects at home and abroad, accumulated some operating experience in the oil and gas industry, continued to expand 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 main business of the group is exploration and extraction of natural gas and oil. It is mainly engaged in unconventional natural gas exploration and development, mainly coalbed methane extraction, while at the same time extending the business to the middle and lower reaches of the industrial chain. Major investment areas include the eastern edge of the Ordos Basin and the Qinshui Basin, which are the most representative coalbed methane production bases in China. In the future, the group aims to develop into a leading private unconventional gas producer among Hong Kong listed companies. Currently, the Group's core business is exploration, extraction and production of coalbed methane in the three intersections of China's Shanxi and Shaanxi provinces through cooperation between its wholly-owned subsidiary Oruian Energy International Co., Ltd. (“Orean”) and China National Petroleum Corporation (“CNPC”). The partners have signed a product sharing contract (“PSC”) since 2010, and the Group has enjoyed 70% of the interest in this project. The “Sanjiao Coalbed Methane Project” is one of the key development projects in the “12th Five-Year Plan for Development and Utilization of Coal Seam Gas (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%, achieved landmark results in coalbed bed methane exploration and development, and sales revenue of coalbed methane also increased dramatically. The overall development plan (“ODP”) of the Sanjiao Coalbed Methane Project submitted to the National Energy Administration (NERA) of the National Development and Reform Commission (“ODP”) 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 a Sanjiao coalbed methane foreign cooperation project. The approval indicates that the Sanjiao coalbed methane project will be constructed according to ODP and will soon enter the stage of large-scale development and production with an annual production capacity of 500 million cubic meters. Additionally, the Group operates three oil field operations in the Ordos Basin in Shaanxi Province, including Jinzhuang Oilfield, Liuluoyu and Yanjiawan Oilfields. Among them, the reserves of 1P and 2P crude oil in the Liuluoyu and Yanjiawan oil fields reached 3.83 million tons; the total area of the Jinzhuang oil and gas field is 66 square kilometers. It was discovered that 4.16 million tons of oil reserves were discovered in 2011/9, and huge stratified natural gas was discovered in 2011. Currently, the Group is in discussions with Shaanxi Yanchang Petroleum (Group) Co., Ltd. on the cooperative development of natural gas resources in the Jinzhuang Oil and Gas Field, 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, integrate and acquire foreign cooperation blocks, and at the same time increase exploration and development efforts in foreign oil and gas fields. It will prioritize 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.