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10/12/2015 1www.sino-oilgas.hk

Corporate Presentation

December 2015

Hong Kong Stock Code：00702.HK


10/12/2015 2www.sino-oilgas.hkwww.sino-oilgas.hk

Content

01 Add your texts here01 Group Profile

02 Industry Highlights

03 Company Highlights

04 Latest Updates



01 Group Profile

Introduction

Milestones

Business Overview

Management Profile

Shareholder Structure

01

02

03

04

05

Group Structure06



Introduction

Listed on the main board of the Hong Kong Stock Exchange (Stock code: 0702) in February 2000, an MSCI China

Small Cap Index stock since 2009

Focus: Conventional and unconventional oil and gas, specialised in coalbed methane (“CBM”)

Region: Investment among the PRC’s best CBM blocks of Eastern Edge Ordos Basin & Qinshui Basin

Vision: To be an international oil and gas explorer and developer

Strategy:

Venture with state-owned oil & gas companies, acquiring blocks offering to foreign investors with high

degree of exploration and commercialization. Meanwhile, strengthen overseas oil and gas exploration and

development

• Sanjiao CBM Field

Unconventional CBM Field

• Jinzhuang Oil & Gas Field

• Liuluoyu Oil Field

Conventional Oil and Gas Fields

Our Assets:



Business Overview

01 CBM exploration and development

Sanjiao BlockCBM reserves of 43.5 billion cubic meters. The ODP of Shanxi Sanjiao CBM Project has received the official approval from NDRC in Nov 2015.

Sanjiao is core development project stated on NDRC’s policy paper “12th five-year plan”

Partner with PetroChina Company Limited

02 Oilfield exploration and development

Shaanxi Oil Business

Oil field Liuluoyu and Yanjiawan located in Ordos Basin : 38.3 x 104 tonners 1P & 2P reserve crude oil

Oil field Jin Zhuang located in Ordos plateau hinterland: oil reserve of 4.16 million tonnes

03 Oilfield exploration and development(target)

Canadian oil business

Located in Alberta, Canada

At least 10 reef oil pools been found to support a minimum of 30 wells drilling

Along Highway 88, complete ground facilities, saving cost of road construction



Milestones

February 2000

Listed in HKEX main board (stock code：0702.HK)

March 2006Sanjiao PSC signed and executed by Orion Energy International (“OEI”)

May 2009

MSCI China Small Cap Index stock

In 2011MaySales Collaboration Agreement signed with PetroChina

September

Created the “Sanjiao model” andresolved overlapping mineraltenements conflicts, which is fullyaffirmed by State Council VicePremier Zhang Dejiang

In 2013AugustJointly announced with PetroChina an increase of gas sales price of RMB¥ 0.32m³ for non-residential users

DecemberIntroduced Sinomaster Group as a strategic shareholder

In 2015MarchSanjiao Project was listed on the Key Construction Works 2015 issued by the office of Shanxi People’s Government

JulyAchieved daily production volume of 180,000 m³

NovemberThe ODP of Sanjiao CBM Project has received the official approval from NDRC

In 2010MayAcquire Shaanxi oil field business

OctoberSanjiao Proved Reserve of 43.5 billion cubit meter endorsed by NDRC, China

NovemberAcquired 100% interest of OEI, who is the foreign operator with 70% stake in the Sanjiao PSC

In 2012JanuaryNDRC release on policy paper 12th five-year plan include Sanjiao as core development project

AugustNEA initiate approval on Sanjiao ODP (1st phase of 500 million m³ production capacity)

DecemberFormed PRC JV company in liquefying coal seam gas with Shanxi International Electricity Group

In 2014FebruaryIntroduced the founder and chairman of Kingkey Group Limited Chen Hua as a strategic shareholder

June and September

Announcements made on for the signing of a MOU of a potential acquisition in Canada

November

Jointly announced with PetroChina an increase of gas sales price of RMB ¥ 0.32 m³ for non-residential users



Management Profile

Dr. Dai Xiaobing, Chairman

Chairman and Executive Director since September 2011 Responsible for the overall work, in charge of finance and project acquisition PhD in Econometrics by the School of Economics, Jilin University, PRC Experienced in the M & A and corporate restructuring of companies in the PRC

Mr. King Hap Lee, Deputy Chairman & CEO

Deputy Chairman and Executive Director since September 2012, Chief Executive Officer since June 2014 Responsible for internal affairs, strategy development and human resource managementWorked in governmental bodies and SOE in PRC

Mr. Wan Tze Fan, Terence， Executive Director & CFO

CFO and Executive Director since March 2009 Responsible for financial and administrative managementMBA holder, fellow member of Hong Kong Institute of Certified Public Accountants (HKICPA) Experienced in accounting with international audit firms and local listed companies



Shareholder Structure

Capitalization Summary

Issued Shares（Current） 17,700 million

52-Week Price Range 0.255 – 0.120

Net Assets（30 June 2015） HKD 4,085 million

Asset-liability Ratio（30 June 2015）12.51%

Market Capitalization （Current） HKD 3,100 million

11.00%

8.00%

11.00%

6.00%64.00%

SOG Management TeamDai Xiao Bing, ChairmanSinomaster Global Limited (Hunag Shao Wu)Other institutional investorsFree Rate



Group Structure

• Orion Energy International Inc. holds 70% interest of Sanjiao CBM Block through a PSC• Bi Tuo Yuan Technology(Shenzhen) Co. Ltd holds 95% revenue interest of Liuluoyu and Yanjiawan Oil Fields through a development contract• Xian Lilong Petroleum Extraction Technology Limited holds 95% revenue interest of Jinzhuang Oil and Gas Field through a PSC• Through having 30% interest of Shanxi Guo Liang CBM Development Limited, cooperates with Shanxi International Electricity Group to develop

Sanjiao LNG Station Project

Sino Oil and Gas Holdings Limited

Grand Rise Development

Limited

Bi Tuo Yuan Technology(Shenzhe

n) Co. Ltd*

Superb China Limited

Shanxi Guo Liang CBM Development

Limited

Power Great Limited

Orion Energy International Inc.*

Sanjiao CBM Block PCS

Key Wisdom Investments Limited

Trillion International Petroleum Extraction

Technology Ltd

Xian LilongPetroleum Extraction Technology Limited*

100%

100%

100%

30%

100%

100%

70%

100%

100%

100%

30%PetroChina Coalbed Methane Company Ltd (wholly owned subsidiary of PetroChina)



02Business HighlightThe China Energy Structure Reform

The Growing Momentum of China CBM Industry

The Precise Industry Supporting Policies

01

02

03



The China Energy Structure Reform

51%

18%

12%

19%

2035 Predicted China Energy Consumption Structure

Coal

Oil

Natural Gas

Nuclear Hydro and others

Sourcing： BP2035China Energy Outlook Executive Summary、NDRC、Ministry of Land and Resources of PRC and National Bureau of Statistics of PRC

66%

17%

6% 11%

2014 China Energy Consumption Structure

Coal

Oil

Natural Gas

Nuclear, Hydro and others

The proportion of natural gas in 2035 will increase

to 12%

The emerging natural gas market

China conventional gas production growth is limited(average production of approximately 11,000-12,000million m³ per year），which needs to rely on theimports of supplementary gas in order to fill the supplygap

Yearly gas demand for Shanxi Province is 4,000 million m³.Since 2011, the nearby provinces offer only 2,000 millionm³of natural gas

According to BP’s prediction，China will overtake Russiato become the second largest gas consumer in the mid-2020s(preceded only by the US).

Chinese dependence on natural gas has reached32%(approximately 113 million m³ per day) in 2013 andwill increase to more than 40% by 2035 (approximately669 million m³per day)

7683

96 101.1 107.7121

132.9

80.788.7

120134.4

147.1

169.2181.6

0

30

60

90

120

150

180

210

2008 2009 2010 2011 2012 2013 2014

Production ConsumptionUnit：1,000 million m³



Growing Momentum of China CBM Industry

Largely improved the coalmine safety: mining after gasproduction will help reducethe gas by 70%-85%, thuslargely reduce the incidencerate of coal mine gas explosionaccident

Independent Energy Source

A new non-polluting energy with high calorific valueIt can effectively reduce emissions of greenhouse gases, and produce a good environmental effect

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CBM Advantages

Coal Mine Safety

CBM is a good alternativeenergy sources in order tosolve future natural gasshortage issues

Environmental Protection

CBM is an unconventional gas resource which is hosted and associated with the coal seam and

methane (CH4) is the main gas content

Its calorific value is the same as conventional gas and they can be mixed and used together

China's CBM resources amounted to 3,680 billion m³, which ranking third in the world

If the CBM can be effectively utilized, it can make up nearly one-third of natural gas demand gap



The Precise Industry Supporting Policies

Constructed 5400 wells, formation ofproduction capacity of 3.1 billion m³

In 2010 the national CBM production reached1.5 billion m³, 1.2 billion m³of sales

New proven CBM geological reserves achieve198 billion m³, which is 2.6 times “10 five yearplan” period

“11th Five Year Plan”

By 2015, CBM production reached 30 billionm³

16 billion m³are developed in ground The additional CBM reserves achieved 1

trillion m³ Built two CBM industrialization base in

Qinshui Basin, Erdos basin eastern

By 2020, CBM production reached 40 billionm3

20 billion m3 are developed in ground, andall utilized

China will focus on the development andutilization of CBM

speed up the Qinshui basin and Erdos basineast edge of exploration

“12th Five Year Plan” “13th Five Year Plan”

Development SubsidiesThe central authority granted the subsidy at RMB0.2/m3 to CBM mining enterprises against the CBM standards

PricingCBM price is based on the principle of market economy. It is determined by sell and buy side. The country does not set a price.

Resources ManagementReduction or exemption from the Use Fees for Mine

Prospecting and Exploiting Rights before 2020Ground extraction of CBM can be exempted from

resources tax

TaxThe value-added tax can enjoy refunding.

Exempted from import duties

Financial Related



03 Company Highlights

Resource AdvantageSuperior assets located in the best CBM block in China

Business Diversification

01

02

03

04

05

Good development potentialProven ability of well drilling

Location AdvantageWell established sales network to the target markets

Technical AdvantageMost advanced well drilling technologyExperienced technical teamAutomated controlled wellsite



Resource AdvantageSuperior assets located in the best CBM block in China

Located in Shanxi and Shaanxi Province，around Eastern Ordos Basin

Block size of 383 sq. km² (of which 2/3 or 283 sq. km ²has proved

reserve)

30-year term Production Sharing Contract, PSC signed 28th March,

2006

Highest 70% working interest of foreign companies

High saturation over 85%, good permeability of 3md compared with

other CBM basins in PRC

Rich Gas Content of 15.4 m/³g (Or 1.54×10⁸m/³Km)². Approximate

coal thickness of 9 meters in 2 gas pay zones

2006

• Exploration period

2013

• Development period

2015

• Production period

2036

The ODP of Shanxi Sanjiao CBM Project has received the

official approval from NDRC in Nov 2015

The 2nd Sino-foreign CBM concession to get the official ODP

approval and 1st CNPC’s running PSCs

Officially commence the sizable development and

production with an annual capacity of 500 million m3 and

enter production period

Profit Sharing Ratio

30% 70%

China National Petroleum

Corporation

Sino Oil and Gas Holdings Limited

PetroChinaCoalbed Methane Company Limited

Orion Energy International Inc.

National External Cooperation SanJiao

CBM Project



Block with reserve report to NDRC

North block with 100Km2reserve report to submit

The RESERVE-US NSAI Competent Person’s Report

China Reserves Report

PetroChina’s Chinese Standard Reserve Report obtain on Oct 2010

National Reserve Committee review and endorsed on Feb 2011

With Proved Reserve: 43.5 bcm And Recoverable Reserve: 21.7 bcm

Category1P Proved

2P Proved + Probable

3P Proved + Probable + Possible

Gross

Gas Reserves （BCF)

79.1 405.6 1022.5

Gas Reserves （billion m3)

22.47 115.23 290.48

Source ： Netherland, Swell & Associates Inc. report (US, Dallas) as of 31 OCT 2011

Resource Advantage

Superior assets located in the best CBM block in China



Good development potentialProven ability of well drilling

17

3538 39 40 42

4

9

3233 33

33

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015.9

HW VW

Number of Wells in Sanjiao CBM

75

+15+0.8

7

17

17

17

7

17

18

18

12

24

39

39

0 20 40 60 80

2011

2012

2013

2014

(km)

Construction of Gas Collection Pipelines

Sales pipeline

Gas collection trunk

Gas Collection Branch

Total 74 km pipelines completed in 2014

74km

Accumulated Workdone:

Pipeline Construction: 39 km inter-well pipelines, 18 km ground pipeline network, 17 km outbound pipelines

Power Grid: 25 km of high voltages power-grid system, 24 km of 10KV power system pipelines

CBM processing Station :

Daily processing capacity of 225,000 m²Daily processing capacity will extend to 500,000 m²，It is expected to be completed in 2015

Gas processing station:

Daily processing capacity of 1,000,000 m²1P processing capacity of 500,000 m²planned to operate in 2016



Location Advantage

1. Sanjiao – Linxian Pipeline• Designated daily capacity 1 mil m³,350 mil m³ per year• Status: in operation since Dec 2012• Target residential / commercial use in Linxian city

2. Sanjiao – Senze Pipeline• Designated daily capacity 1 mil m³, 350mil m³ per year)• Status: in operation since Jan 2013• Support Gas Consumption of Senze Coal & Aluminum Group (Producing

flame resistant material and aluminum)

3. Sanjiao – Lvliang Pipeline planned to supply gas to Xiaoyi City and Eastern Shanxi Gas Network• Designated daily capacity 1 mil m³, 350mil m³ per year• Status: construction of pipeline complete in Jan 2014• Target residential / commercial/ industrial use in Lvliang City

4. He Dong Pipeline• Provincial pipeline cross Sanjiao with transportation capacity over 8.5 mil m³

per day • Status: Completed with transportation capacity of 3bcm per year

5. Sinopec Yuji Pipeline• National pipeline with transportation capacity over 8.5 mil m³ per day • Status: Completed with transportation capacity 3 bcm per year

Well established sales network to the target markets



Technical Advantage

Original multilateral well design Newly formulated multilateral well design

No. of wells needed

Laterals

Coal Cleat

Cost

Most advanced well drilling technology



Dr. Rao Meng Yu, Vice President and Chief Geologist

Responsible for CBM scientific research, exploration deployment, designation and onsite engineering Graduated from Anhui University of Science & Technology, major in Geology, awarded PhD in Geological Sciences by the China University of

Petroleum (East China) Experienced in onsite and indoor research Has published 24 research papers in Acta Petrolei Sinica journals, research paper was awarded the 2nd prize of Science and Technology

advancement in 2009 by China National Coal Association

Mr. Robert l. Hinds, Technical Consultant

Responsible for CBM exploration deployment and onsite engineering, work as technical consultant in OEI since 2012 Over 30 years experience in the oil & gas industry; as project manager, executive director work in varies US and international oil gas & company,

e.g., American Wireline Services, Inc.，Baker Hughes，Environmental Crossings, Inc. , and experienced in horizontal wells drilling and well completion technique

Graduated from Michigan state university bachelor's degree, major in engineering

Mr. Jesus Alfredo Correa, Technical Consultant

Responsible for new horizontal wells drilling and onsite technical support, work as technical consultant in OEI since 2012 Over 34 years experience in the oil & gas industry, working as surveyor, district coordinator, directional driller and gained substantial experience in

well planning, measure while drilling, logging while drilling technique Worked in varies US and international oil gas & company, e.g., Baker Hughes, Hallibuton, Blackmax and Sharwell Energy

Mr. Calvin De Ghelder, Technical Consultant

Responsible for CBM onsite well planning, work as technical consultant in OEI since 2013 Over 31 years experience in the oil & gas industry, over 24 years well drilling experience Worked as senior project manager, vice president in several US and international drilling company and experienced in oversight of drilling

operations from spud to total depth drilled, logging, completion and facility design

Technical Advantage (Continued)

Experienced technical team



Drainage automation system is built using SCADA and star branching network topology. To achieve of gas wells

transmitted data, CNG stations transmitted data, and sub-stations transmission data be centralized monitored and to

allow unified management. To form data "automatic collection, centralized management“.

• Sub-transmission stations placed surveillance cameras and data collection systems in wellsite and CNG stations

Wellsite

• Transmit to the data repository monitoring center within the oilfields via the network

Monitoring Center• Database information is

transmitted to the monitoring workstation. On-site technical colleagues can make promptly data analysis and unified management

Workstation

Technical Advantage (Continued)

Automated controlled wellsite



Business Diversification Investment in Sanjiao Block of liquefied coalbed gas station

(LNG Designed Plan - As Actual)

Partner Shanxi International Electricity Group (A very large SOE in Shanxi Province operating industrial and residential city gas supply, power supply, pipelines as well as LNGs)

Percentage involved Sino Oil and Gas (30%)

Liquefying Capacity Per Year 400 million m ³(OR 14.08 bcf) Per Day 1.2 million m ³(OR 42.24 mmcf)

Cumulative Gas Production Assume period of production to be 25 years to liquefy total 338 bcf of coal seam gas

Total Investment Amount Approximately RMB 800 million (OR US$ 128 million)

SOG Stake Consideration RMB 50 million (OR US$ 8 million)

Status First phase of 100 million m³ / year (or 0.3 million m³ / day) expect completion align with ODP final approval



Investment in Canada Alberta Oil Pool

Status

• Financial review: Conducting a due diligence review of the assets, indebtedness, operation and financial aspects of the target group.

• Geological Evaluation：Issue a geology research report on the correlation of oil-bearing horizons, reservoir dynamic testing, research on fractured reservoirs, formational pressure, research on formation temperature and drive type of reservoir of the oil field in Canada.

Target Acquisition

• Target acquisition blocks covering a total of about 788 square kilometers

• Located in the area to the north 800 km of Calgary, Alberta, Canada

• At least 10 reef oil pools been found to support a minimum of 30 wells drilling

• Along Highway 88, complete ground facilities, saving cost of road construction

Picture source: Google Maps

Alberta

Business Diversification (Continued)

Calgary

Mikkwa mining area



04 Latest Updates

2016 Development Plan of Sanjiao Project

Financial Highlights

01

02



Sanjiao Project Development Plan 2016

The ODP of Shanxi Sanjiao CBM Project has received the official approval from NDRC in Nov 2015. 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 of 500 million m3.

Overall Planning

CoalbedNo. 3/4/5 coal, based on the current well network to improve, then expand to the surroundings area, commencing “Rolling Development”

Well TypesMultilateral well + vertical well/ vertical well clusterShallower than 700m – mainly multilateral well Deeper than 700m-- mainly vertical well/ vertical well cluster

Development Teams18 drilling teams, 2 fracturing units, 7 underground production team, as well as ground pipeline network, inter-well pipelines, grid system, wellsite standardization, pilot testing teams, totally over 30 teams to kick off the comprehensive construction work

Capital ExpenditureThe estimated CAPEX in 2016 is approximately RMB 1 billion. Sino Oil& Gas accounts for 70%, i.e. approximately RMB 700 million



Previous Financial Highlights

15,86119,218

15,226 13,706 11,504 10,094 8,516 8,024

0

550

2,864 6,246

18,280 20,61928,352

35,089

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1H2011 2H2011 1H2012 2H2012 1H2013 2H2013 1H2014 2H2014

The composition of the main income

Crude oil sales CBM sales

Unit：1,000 HKD

1,920

4,250

12,490

17,970

20,530

23,730

12%

27%

62%

71%

90%

97%

0%

20%

40%

60%

80%

100%

120%

0

5,000

10,000

15,000

20,000

25,000

1H2012 2H2012 1H2013 2H2013 1H2014 2H2014

CBM sales and Production ratio

CBM Sales CBM Production Ratio

Unit：1,000 cubic meters

3,423,320

3,937,213 3,935,973

4,275,399

4,699,179

2,528,375

3,060,956 3,023,174

3,447,237

4,053,989

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2010 2011 2012 2013 2014

Total Assets and Net Assets

Total Assets Net AssetsUnit：1,000 HKD

2,598,644

3,007,374

3,272,934

3,602,4753,749,048

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2010 2011 2012 2013 2014

Natural gas exploration and evaluation assets

Natural gas exploration and evaluation assetsUnit：1,000 HKD



2015 Interim Report



192

425

1,249

1,797

2,053

2,373

2,738

1,639 1,566

2,024

2,521

2,293

2,435

2,790

-

500

1,000

1,500

2,000

2,500

3,000

1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015

2,790 2,293 22%

2,738 2,053 33%

98.1% 89.5% 10%

2015 Interim Report (Continued)

1H 2015 CBM Sales Mix



Disclaimer

This document has been prepared by Sino Oil and Gas Holdings Limited (“Sino Oil and Gas” or the “Company” ) for

the sole purpose of briefing by the Company, and copying and delivery to others are strictly prohibited. Since the

dissemination of this document within the jurisdiction of various countries might be subject to local laws, any

individuals who will receive this document shall have a clear understanding of and comply with such laws and

regulations. The information contained in this document has not been verified independently. There are no explicit

or implied representations or warranties as regards the fairness, accuracy, integrity or correctness of the

information contained in the document. This document is not intended to provide a complete or comprehensive

analysis of the financial or trading position of the Company or its prospects. Therefore, any individuals who will

receive this document shall be aware they shall not rely on the contents of this document. The information and

opinions provided in this document is up to date as at the date of this briefing and might be subject to changes in

the future in respect of which no further notice will be issued. The Company and its affiliated companies, advisors

or representatives disclaim any liability whatsoever for any loss howsoever arising from using this document or its

contents or from other aspects of this document (whether this is caused by negligence or other reasons).

The information provided to you in this document does not constitute, or form part of any offer for subscription or

sale of, or solicitation of any offer to subscribe for or sale of any securities of Sino Oil and Gas Holdings Limited

(“Sino Oil and Gas” or the “Company” ) and/or its subsidiaries (collectively, the Group”) nor shall it form the basis

of, nor can it be relied on in connection with, any contract or commitment whatsoever.



Thank You!

Contact:

Responsible: Investor Relations Department

Address: Unit 3707-08, West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong

Email: [email protected]

Tel: +852 2802 3623

Fax: +852 2802 3362

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