For Immediate Release

Sino Oil and Gas Holdings Limited

CBM Sales Revenue Increased By 42.2% YoY in Third Quarter 2015

Hong Kong, 08 October 2015 -Leading oil and gas explorer and developer Sino Oil and Gas Holdings Limited (the "Company", Hong Kong stock code: 702) today issued a voluntary announcement to the shareholders and the potential investors with regard to the Company's coalbed methane ("CBM") and oil operations update for the third quarter of 2015 (hereinafter referred to as the "Third Quarter of 2015" or the "Period").

During the Period, Sanjiao project has a CBM production of 14.29 million cubic meters (the third quarter of 2014: 10.97 million cubic meters), with CBM sales volume of 13.72 million cubic meters (the third quarter of 2014: 10.53 million cubic meters), representing an increase of 30.3% as compared with the same period last year. The sales revenue increased by 42.2% to HK$21.85 million when compared to same period last year (the third quarter of 2014: approximately HK$15.37 million). This was mainly attributable to the increase in sales volume and sale price.

The government subsidy of approximately HK$7.7 million on the sales of CBM for the year 2014 was received and recorded as "other revenue" during the Period.

During the Period, the average gas sale-to-production rate was 96.0% (the third quarter of 2014: 96.0%). The CBM sales for the Period were composed of industrial piped CBM sales and residential piped CBM sales which accounted for 97.9% and 2.1% respectively. As such, same as last year's third quarter, piped CBM sales accounted for 100% of the total CBM sales during the Period.

By the end of the Third Quarter of 2015, the Sanjiao CBM project of the Group has completed a total of 75 wells, including 42 multi-lateral horizontal wells, while the remaining 33 are vertical wells. Out of the aforesaid 75 wells, 67 wells are under dewatering stage, of which 57 wells have accessed to the gas collection pipeline network.

Liuluoyu and Jinzhuang oil fields recorded crude oil sales of 865 tonnes during the Period (the third quarter of 2014: 1,160 tonnes). The sales revenue amounted to approximately HK$2.75 million (the third quarter of 2014: approximately HK$4.12 million). During the Period, the sale price per tonne decreased by 9% when compared to the same period last year.

For further enquiries, please contact:
Celia Li
Corporate Communications 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/ .