Grand Prosper Group is a HK-incorporated company investment holding company and owns, through its 90% equity ownership of Deshi Oil and Gas Exploration. Deshi has an exploration, exploitation and production contract for oil and natural gas with Shengli Oilfield Daming Oil & Gas Exploration And Exploitation Technology Co. Ltd. (being referred to as the "Contract"), a wholly owned subsidiary of China Petroleum & Chemical Corporation ("Sinopec").

The Contract covers 2 concession areas of approximately 82km² and 172km² and are known as the Ciyaobao area and Dongdaoliangzi area, in the Ningxia Autonomous Region, China. The Contract expires in Apr 2026 and may be extended. The concession areas lie within the province of the proven Ordos gas field. Seismic data collection and exploration have been conducted in the areas and the results have been positive and encouraging. In particular, exploratory research carried out by Shengli Oilfield Daming Oil & Gas Exploration And Exploitation Technology, have concluded that the Ciyaobao concession area contains more than 7.8 billion m³ of natural gas reserves. Based on the review and analysis by experts engaged by Shengli Oilfield Daming Oil & Gas Exploration And Exploitation Technology, an aggressive work programme for FY08 has been drawn out with the objective to bring the Ciyaobao area into production, and would include drilling and completing 3 to 8 wells.

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