Sino Oil Gas Attained Technological Breakthrough - Obtained Two National Patents for Its Sanjiao CBM Project

For Immediate Release

Sino Oil & Gas Attained Technological Breakthrough Obtained Two National Patents for Its Sanjiao CBM Project

Hong Kong, 7 January 2016 - Leading oil and gas explorer and developer Sino Oil and Gas Holdings Limited (the "Company", Hong Kong stock code:702) is pleased to announce today, there is a technological breakthrough attained in its Sanjiao Coalbed Methane ("CBM") Project ("Sanjiao Project") and the company obtained two patents from State Intellectual Property Office of the P.R.C recently, including:

1. The invention of single wellbore CBM multilateral well system and drilling method

2. The method of single wellbore CBM multilateral well drilling and completion

The invention of single well eye CBM multilateral well ("newly formulated multilateral well ") system drilling and completion method is based on China complicated geological situation and has overcome the challenges of original multilateral well and vertical well including the well connection and construction, unavoidable wellbore collapse in drainage stage.

The newly formulated multilateral well has many advantages including, high and stable gas productivity, long production period, high recovery ratio, lower overall cost, which help Sanjiao Project to great improve its efficiency and productivity. Meanwhile, the well type also reduces the drilling risk, minimizes the use of land. Thereby it helps reduce the development cost significantly and provides a solid technical support for the company large-scale development and construction as well as production safety.

The company has outstanding technical teams. They have extensive experience in different aspects of key CBM technology, including CBM reserves knowledge and research, technology matching, well planning, process supervision, quality control, completion and drainage. This breakthrough has effectively reduced the CBM development cost and increase the overall efficiency of the project which provides a solid ground for the company's future growth.

For further enquiries, please contact:

Celia Li Corporate Communication Department Phone：(852) 2802 3623 Email：celiali@sino-oilgas.hk

About Sino Oil and Gas Holdings Sino Oil and Gas Holdings Limited is a leading oil and gas developer and explorer. The Group is principally engaged in natural gas and oil exploration and extraction with a focus on unconventional gas -- Coal Bed Methane ("CBM"). Sanjiao CBM project is the Group's core business and the Group will conditionally and strategically extends its business to midstream and downstream. On this basis, the Group will balance the development of its gas and oil business portfolio, strengthen the overseas business plan and seek for merge and acquisition opportunities of high-quality oil and gas resources globally. For more information, please visit http://www.sino-oilgas.hk/. Or please follow Sino Oil and Gas official WeChat: /