Hong Kong, May 27, 2011 - Oil and gas company Sino Oil and Gas Holdings Limited (“Sino Oil and Gas Holdings”, HKEx: 702) announces new progress on the coalbed methane (CBM) project in the Sanjiao Block in Shanxi Province developed and produced by the Group’s subsidiary, Orion Energy International Inc. (“Orion”), jointly with PetroChina Coalbed Methane Gas Co. (“PetroChina CBM”) in accordance with a production-sharing contract (“PSC”). The two parties signed a sales collaboration agreement on 27 May 2011 to drive active sales negotiations with industrial and commercial clients in the surrounding areas. It is expected that the details of the CBM sales contracts will be finalized in the near future.

Sino Oil and Gas Holdings Chief Executive Officer Mr. King Hap Lee stated that: “Shanxi has a rapidly developing industrial sector which generates strong demand for CBM to satisfy energy consumption and production needs. We are optimistic about the prospects of our collaboration on this project.”

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 conventional natural gas. The Group is committed to building a portfolio of oil and gas assets and operations with the aim of developing 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 Block in Erdos Basin of China.

Issued by :
Sino Oil and Gas Holdings Limited

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