The ODP of Sanjiao CBM Project Has Been Officially Granted the Approval From NDRC

HONG KONG, CHINA - Media OutReach - Nov 23, 2015- Leading oil and gas explorer and developer Sino Oil and Gas Holdings Limited (the "Company"), and its subsidiaries (collectively the "Group") (HKSE: 00702) today announced the overall development plan ("ODP") of its Shanxi Sanjiao Coalbed Methane ("CBM") Project ("the Project") has received the official approval from National Development and Reform Commission ("NDRC"). The Project is the first CBM sino-foreign cooperation project of China National Petroleum Corporation ("PetroChina") received NDRC approval. Also, it is the only CBM Sino-foreign cooperation project in the eastern edge of the Ordos Basin, with the richest CBM resources, received NDRC approval.

Reference is made to the "Management Discussion and Analysis: Natural Gasand OilExploitation" section in the Interim Report of the Group dated21 August 2015.  It was mentioned that through the Company's wholly-owned subsidiary Orion Energy International Inc. ("Orion"), the Group had entered into a production sharing contractwith PetroChina,its partner in the PRC, for exploration, utilization and productionof the CBM field in the Sanjiao block, located in the Ordos Basinin Shanxi and Shaanxi provinces. The Group hadcompleted all necessary assessment reports and obtained allrequired governmental approvals and the finalapproval of ODP for the development of the SanjiaoCBM project was expected to be granted in the near future.

In respect of the above mentioned SanjiaoCBM project, the Company is now pleased to announce that on 20 November 2015, the Company has received the official written notification from PetroChina that the NDRC has granted the "National Development and Reform Commission: re ShanxiSanjiao─QikouCBMblocks, ForeignCooperation Project, OverallDevelopment Plan Approval" (國家發展改革委關於山西三交──磧口區塊煤層氣對外合作項目總體開發方案的批覆) (the "Approval"). As such, the NDRC has officially given consent to the development of SanjiaoCBM foreign cooperation project with Orionand PetroChina as the parties to this project. The Approval signifies that the Sanjiao CBM project will soon, in accordance with the ODP, commence the sizable development and production with an annual capacity of500 million cubic meters. 

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