Hong Kong, September 7, 2009 - Oil, gas and renewable energy company Genesis Energy Holdings Limited (HKEx: 702) today announced the signing of an assignment for the acquisition of the mining right to a 12-sq-km oil and gas exploitation project located in Yanjiawan, Shaanxi Province, the PRC (陜西省閻家灣). The total consideration of RMB31,893,000 (equivalent to HK$36,180,000) will be settled in cash, which will be satisfied by the Group from its internal resources.

The assignor is Shenzhen Feng Yuan Information Consultants Limited (深圳市豐源信息諮詢有限公司).

Genesis Energy Chairman Mr. Terence Kong remarked: “This acquisition represents a good opportunity for us to complement our oil and natural gas business in the PRC. Considering the number and development potential of the oil and natural gas wells under the project, the consideration is fair and reasonable. With signs of gradual economic recovery in the PRC and worldwide, the demand for oil and gas is likely to increase in the long run. In addition to income to be generated from the daily operations of the project, we will also enjoy the potential of gaining from the possible appreciation in value of the oil and gas assets.”

The revenues attributable to the mining right for the years ended December 31, 2007 and December 31, 2008 were approximately HK$7,017,000 and HK$9,133,000 respectively. The respective unaudited net profits after taxation and extraordinary items attributable to the mining right for the past two years were approximately HK$1,256,000 and HK$1,627,000. Such results were generated on the basis of 32 and 39 operating wells in 2007 and 2008 respectively. The number of operating wells has been further increased to the current 58.

Mr. Kong added: “Considering the increase in the number of operating wells to 58 after our acquisition, and the possibility of reducing the cost of exploitation after we obtain the relevant technical data, we are optimistic of the prospect of this project.”

The term of the mining right to the exploitation project will expire in September 2015, with extension subject to further negotiation.

About Genesis Energy
Genesis Energy Holdings Limited (HKEx: 702) is an energy company with a key focus on oil and gas, as well as renewable sources of energy. The Group is committed to building a diversified portfolio of energy assets and operations with the aim of developing into one of the leading independent energy businesses in Greater China. The Group currently operates oil and gas fields in the US and the PRC.

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Genesis Energy Holdings Limited

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