Hong Kong, December 19, 2010 - Oil and gas company Sino Oil and Gas Holdings Limited (“Sino Oil and Gas Holdings”, HKEx: 702) is pleased to welcome Ping An Life Insurance Company of China Limited (“Ping An Life”) as a strategic investor. On December 17, 2010 (after trading hours), the Company entered into a placing agreement in respect of the placing of an aggregate of 437,000,000 new shares at the placing price of HK$0.45. The placing shares represent approximately 5.02% and 4.78% respectively of the existing and enlarged share capital of the Company.

Ping An Life is a major subsidiary of Ping An Insurance (Group) Company of China. It is the second largest life insurer in China by insurance income.

Sino Oil and Gas Holdings Executive Director Dr. Dai Xiaobing said: “Ping An Life’s investment is another important step towards our long-term goal of building the Company into a China-focused high-growth oil and gas player. Our resources will be focused on investments to tap the coalbed methane (CBM) and oil reserves in China. The strategic investment by Ping An Life will support our continued pursuits in such key areas.”

The placing to Ping An Life came after similar investment by global institutional asset manager Och-Ziff Capital Management Group LLC in October 2010.

The placing price of HK$0.45 represents a discount of approximately 8.16% to the closing price of HK$0.49 on the date of the placing agreement; and a discount of approximately 0.88% to the average closing price of HK$0.454 for the last five consecutive trading days.

Net proceeds of approximately HK$194 million from the placing are intended to be used for general working capital and as funds for future investments.

The placing agent is CCB International Capital Limited.

About Sino Oil and Gas
Sino Oil and Gas Holdings Limited (HKEx: 702) is an energy company with a key focus on oil, coalbed methane (CBM) and other conventional natural gas. The Group is committed to building a portfolio of oil and gas assets and operations with an aim to develop into one of the leading independent oil and gas companies in Greater China. The Group currently operates oil and gas fields in Shaanxi and a CBM project in Sanjiao District in Shanxi and Shaanxi of China.

Issued by :
Sino Oil and Gas Holdings Limited

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