Hong Kong, August 14, 2007 - Oil and gas company Genesis Energy Holdings Limited (HKEx: 702) today announced that on August 3, 2007, the Group entered into a legally binding cooperation agreement with Ningxia Changqing Shuang Long Industrial Co., Ltd. (寧夏長慶雙龍實業有限公司, "PRC Partner") setting out the principal framework in relation to an oil exploration and production project in Shaanxi Province, the PRC. The oil exploration and production project covers a site area of over 500 sq km. Pursuant to the cooperation agreement, the PRC Partner shall make use of the oil development zone granted to it by and registered with the Department of Land and Resources (國土資源部), while the Group shall provide liquid funding for carrying out exploitation works. The Group and the PRC Partner shall each share 95% and 5% respectively of profits generated from the oil exploration and production project.

The oil field is located in Shaanxi Province and stretches across the northern part of Xun Yi County, Zhi Tian Town, Qiu Po Tou Town, Ma Lan Town, Qi Li Chuan in the eastern part of Xun Yi County and Cheng Guan Town. The Group will hold the exclusive right to explore and produce oil from not less than 1,000 oil wells at the cost of RMB120,000 each. Development works have to be completed within three years and the Group shall have the right of exploitation on the worked oil wells for 25 years after exploration.

Mr Terence Kong, Executive Director, Genesis Energy, said: "Sites nearby with the same geological structures are all oil producing fields. According to a preliminary technical report by our geologists, petroleum initially in place is not less than approximately 70 million tonnes of crude oil. We have engaged an international petroleum consulting firm to perform an independent geological and geophysics review on the oil investment project. Subject to this review a detailed drilling plan will be prepared."

All related exploitation costs and expenses shall be borne by the Group, while technical staff and engineers, equipment and technological analysis shall be provided by the PRC Partner. The PRC Partner will also be responsible for securing the respective sale and transportation licenses for the crude oil output. After the location of the oil wells have been fixed the Group shall have the priority to choose the most suitable 200 sq km area, from the 500 sq-km site, for its exclusive exploitation. For the remaining area of approximately 300 sq-km, the Group and the PRC Partner will jointly develop the field and/or invite third party(ies) to join and co-develop the site.

Mr Kong went on the say that: "This project will spearhead our oil exploitation business in the PRC and will become the business model to drive our further developments in the fuel-producing Shaanxi-Gansu-Ningxia area."

Genesis Energy has earlier completed the acquisition of Grassy Trails Oil and Gas Field in Utah, the US, with revenues expected to be booked in the fourth quarter of this year. Mr Kong said: "In view of the continued rally of crude oil prices, we look forward to expediting our oil exploitation business developments in the US and the PRC, and to broadening our business scope to maximise shareholder value."

An application has been made to the Stock Exchange of Hong Kong for the resumption of trading in the Company's shares with effect from 9:30 am on August 15, 2007.

About Genesis Energy
Genesis Energy Holdings Limited (702) is an energy company with focus on oil and gas exploitation and operations. The company invests in and operates oil and gas fields in the United States and is currently in negotiations with regard to certain investments in oil and gas projects in the PRC. Downstream, the company is engaged in crude oil transportation and pipelined gas businesses.

Issued by :
Genesis Energy Holdings Limited

Through :
t6.communications limited
Jenny Lee or Angus Ho
email: enquiry@t6pr.com
URL : http://www.t6pr.com