China Huarong Energy : Oil Well M656 of Kyrgyzstan Project, Completed Production Test with Encouraging Results

[新聞稿] Press Release OIL WELL M656 OF KYRGYZSTAN PROJECT COMPLETED PRODUCTION TEST WITH ENCOURAGING RESULTS

(16 June 2015, Hong Kong) - China Huarong Energy Company Limited ("Huarong Energy", the "Company" or "We", and together with its subsidiaries, the "Group"; stock code:

01101.HK) is pleased to announce that, the production test of oil well M656 of the

Kyrgyzstan Project has recently been completed with encouraging results of flowing wells and considerable production volume. As of 15 June 2015, drilling work of 36 new wells in the Kyrgyzstan Project had been completed and a daily production of approximately 737 barrels of oil was recorded on the same date. With the development potential of the Kyrgyzstan Project being further realised, we will continue to proactively prepare for perforation and production of the existing drilled wells and accelerate the pace of new well development.
Oil well M656 is located in Maili-Su IV oilfield zone. Drilling of the oil well commenced on 7 April 2015 and was completed on 8 May 2015 with well completion on 14 May 2015. On 14 June 2015, it completed the production test process, and recorded a daily production of approximately 850 barrels and 402 barrels of oil when using 8mm oil choke and 3mm oil choke, respectively. The oil well is expected to commence production in the near future.
We are optimistic and encouraged by the production test results of oil well M656 and believe that the results have indicated huge development potential of the Kyrgyzstan Project. We are optimistic and encouraged by this. Maili-Su IV contains large areas of oil reserves where development has not commenced, representing significant potential in development and increase in production. With further optimized production environment, the Group is proactively accelerating the pace of new well development and preparing for perforation and production of the existing drilled cluster wells in order to further realise the development potential of the Kyrgyzstan Project.

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OIL WELL M656 COMPLETED PRODUCTION TEST WITH ENCOURAGING RESULTS

16 June 2015 / P.2

For press enquiries: China Huarong Energy Company Limited

Mr. Michael Cheng Tel: [phone] Email: [e-mail]

iRregular Consulting Limited

Ms. Catherine Tsang Tel: [phone] Email: [e-mail]

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