Hong Kong, February 4, 2008 - Oil and gas company Genesis Energy Holdings Limited (HKEx: 702) today announces that a legally binding Operating Agreement had been signed with Inner Mongolia Hua Lin Investment Co. Ltd. (內蒙古華霖投資有限公司, "Hua Lin") pursuant to which the Group is commissioned to be the operator of the E Tuo Ke Oil & Gas Field (內蒙古鄂托克油田, "E Tuo Ke"). As the operator of the project, the Group will provide related investigation, exploration and operating services for a number of prospects in E Tuo Ke to which Hua Lin holds the exploitation right together with the ownership. The owner will fund the operating costs of Genesis Energy’s team for E Tuo Ke. Genesis Energy will receive a 7% management fee based on the net sales revenue of E Tuo Ke, after deducting depreciation of fixed assets, machinery and equipment, as well as staff expenses. The operating agreement has a term of three years, upon expiry of which the Group has the right of first refusal to extend the contract for another two years.

Pursuant to the agreement, Genesis Energy will commission a new geological study of the E Tuo Ke block in order to draw up a detailed exploration scheme. Genesis Energy will also take reference from a previous geological report undertaken by Canadian specialist firm Sproule International Ltd., in December 2004. The Sproule report pointed to the prospect of developing 118 gas wells in the next eight years, or an average drilling of 16 new wells per year. With reference to a preliminary geological/geophysical report prepared by Sproule, the estimated total reserves of gas is 74,360 Mmcf. Based on Sproule’s preliminary estimates on the reserves of the block, Genesis Energy will take forward further studies on the project’s exploration and exploitation prospects.

In its first phase of operation, Genesis Energy will operate a potential reservoir zone of an area of 1,030 sq km in E Tuo Ke. A total resource development area of 305 sq km with 14 prospects has already been identified. Professional services to be provided by Genesis Energy will include drilling, transportation, property protection and storage on land, accounting and legal counseling services.

With a number of test wells already in place, it is expected that the oil and gas production schedule of E Tuo Ke can be expedited.

Genesis Energy Executive Director Mr Terence Kong said: "The upstream oil and gas exploitation business in Inner Mongolia will enjoy strong leverage of our experience in oil and gas exploration and production. We will deploy advanced technologies, such as the lateral drilling technologies employed by Grassy Trails in Utah, the US, for the development of E Tuo Ke. This agreement will open up for us a new stream of management fee revenues, but without the need for operating cost or fixed capital input. This collaboration model will bring a risk-free opportunity for the Group to enjoy returns from a project of great potential. We are confident of the future prospects of this project."

"The Group has an existing office in Xian which is engaged in oil and gas exploration. Located only a few hours’ drive from E Tuo Ke, our Xian office is expected to bring further synergies by providing operational and technical support for the new project," added Mr Kong.

Trading in the shares of Genesis Energy was suspended at the request of the Company. An application has been made to the Stock Exchange for the resumption of trading in the shares with effect from 9:30 a.m. on February 5, 2008.

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 gas stations and pipelined gas businesses.

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