Fosun's Roc Oil has made a major exploration breakthrough in the Pearl River Estuary Basin of the South China Sea

Hainan Mining, a subsidiary of Fosun, announced today that the exploration well in the 03/33 contract area of the Pearl River Kou Basin in the South China Sea, cooperated by its holding subsidiary Roc Oil and CNOOC, has made a major exploration breakthrough and made important oil and gas discoveries
in Paleogene strata.

According to the announcement, major oil and gas discoveries in Block 03/33 have laid the foundation for
further understanding of the Paleogene exploration potential of the Lufeng Sag.
In the future, Roc Oil and CNOOC plan to conduct further research on the data obtained from the well, and report the reserves to the National Reserves Committee to promote the preliminary research of
the overall development plan.

In June 2019, Fosun's Hainan Mining, an independent upstream oil and gas exploration and development company registered in Australia with more than 20 years of experience in oil and gas operations, acquired a 51% stake
in Roc Oil.

In 2015, ROC and CNOOC signed the oil contract for the 03/33 contract area, the first exploration project in the eastern part of the South China Sea, and served as the operator of
the exploration block.
According to the contract, Roc Oil holds a 50% participation interest in
the project.

As the first commercially discovered well in the 03/33 contract area and obtained high natural production capacity in Paleogene stratigraphic testing, this exploration well is the result of repeated technical demonstration and deliberation and continuous innovation and exploration of
cooperation mode by Roc Oil and CNOOC Shenzhen Branch.
The discovery will greatly enhance the exploration confidence in the Lufeng 13 West Depression, Xiciwa and even the low bulge area of Huilu in the eastern part of the South China Sea, and is expected to form a new exploration hotspot
.

According to the announcement, if Block 03/33 enters the development and production stage during the oil contract period, the exploration fees paid by Roc Oil will be recovered through the investment recovery part of crude oil production, and the revenue will be shared
in accordance with the contract after the cost recovery is completed.

The success of this exploration well is also a successful verification of
the cooperation concept of "innovation-driven, win-win cooperation" that both Chinese and foreign parties actively practice.
ROC Oil will continue to work hand in hand with CNOOC to explore the successful path of China's offshore oil and gas exploration and development, and continue to contribute to China's national energy security
.

In the future, Hainan Mining will adhere to the development concept of "rooted in Hainan, facing the world, green development and sustainable growth", through the two-wheel drive of "industrial operation + industrial investment", in the three tracks of "iron ore + oil and gas + new energy", to create a global resource industry ecology, and strive to become "an industrial development group
with strategic resources as the core and international influence".
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