Hong Kong, November 15, 2011 - Oil and gas company Sino Oil and Gas Holdings Limited (“Sino Oil and Gas Holdings”, the “Company”, HKEx: 702) today announces that the Company shall allot and issue 312,000,000 new incentive shares to the vendor of the Sanjiao Block coalbed methane (CBM) project which the Group acquired pursuant to an acquisition agreement entered into on July 16, 2010. The acquisition was completed on November 15, 2010.

Pursuant to the acquisition agreement, if the target group produces within one year of completion a competent person’s report issued by a competent person (as defined in the Listing Rules) endures that the aggregate of the proved reserves, probable reserves plus possible reserves of the CBM field attributable to the target group under the production sharing contract shows a 15% increase over the aggregate of such reserves in the competent person’s report included in the circular (in respect of the acquisition) to reach an amount not less than 663.8 bcf., (or in other words, such aggregate reserves of the entire Sanjiao Block under the production sharing contract being not less than 1,014 bcf.), then the consideration for the acquisition will be increased by HK$156 million, to be satisfied by the issue and allotment of 312,000,000 new incentive shares at the issue price of HK$0.5 per incentive share within one month after the production of such report.

On November 14, 2011, the target group produced to the Company a competent person’s report issued by a competent person showing the proved reserves, probable reserves plus possible reserves of the CBM field attributable to target group under the production sharing contract as of 31 October 2011 to be 669.5 bcf.

Sino Oil and Gas Holdings Executive Director and Chief Executive Officer Mr. King Hap Lee said: “The competent person’s report validates our investment into the Sanjiao Block CBM project. We are confident of the promising prospects of this CBM field, which is an important component of our oil and gas asset portfolio based primarily in Erdos Basin.”

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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