The Group is operating three oil fields in Ordos Basin in Shaanxi Province, including Jin Zhuang, Liuluoyu and Yanjiawan.

The 1P and 2P crude oil reserve of Liuluoyu and Yanjiawan reach 3.83 million tons.

Jinzhuang oil and gas field with a total area of 66km has a proved oil reserve of 4.16 million tonnes at September 2011. A huge tight gas reserve was discovered in 2011, with an indication of four gas pay zones at a depth of 2,800m-3,200m. Two pilot gas wells have been drilled with fracture stimulus, with expected gas production per well of more than 20,000 cubic meters once production stabilized.

The Group is discussing with Shaanxi Yanchang Petroleum (Group) Co., Ltd. regarding the natural gas resources development and hope to further strengthen the Group's resource reserve.