Upstream Oil Field in China

Block Type: Medium crude oil

Block Area 590 km²

Location Inner Mongolia Erlian Basin

Net 2P Reserves 10.8 mmbbl (as of March 31, 2022)

FY2021 Production 793 bbl/d

FY2021 Net Revenue HK$138 million

On July 2016, the Company completed the acquisition of the entire equity interest of Hongbo Mining which is principally engaged in the exploration, development, and production of crude oil in Inner Mongolia of the PRC for the cash consideration of RMB558,880,000.

In FY2021, Hongbo Mining’s oil production volume decreased by approximately 9.2% to approximately 285,459 barrels; gross and net oil sales volume decreased by approximately 10.6% to approximately 285,759 barrels and 228,607 barrels, respectively, and gross and net revenue from sales of crude oil increased by approximately 53.7% to approximately HK$172.9 million and HK$138.3 million, respectively, as compared with FY2020.