Pending exploration right the coal-bed methane project is suspended

Due to the intervention in Baicheng and the Kuche area of CBM exploration Investment, the oil shares (002207) have been hot-won by the market.　　However, the company announced today that it would suspend its investment in CBM projects because coal-bed methane projects have not yet been granted exploration rights.　　The Board decided to suspend the investment in CBM exploration in Xinjiang Baicheng and Kuche region from the second half of this year, according to the company's decision to decide wholly-owned subsidiary of Xinjiang Oil Energy Development Co. at the same time, all equipment modification related to CBM exploration and development is suspended, and the exploration work of CBM will be invested after obtaining the corresponding prospecting warrants. Quasi-oil shares said that, since the establishment of quasi-oil energy, the administrative departments at all levels to bid for the Xinjiang Baicheng, Xinjiang Kuche area of coalbed methane exploration rights, while the investment in Xinjiang Baicheng, Xinjiang Kuche area of coalbed methane resources for preliminary investigation and investigation. As of June 30, 2010, more than 37 million yuan has been invested.　　According to the regulations, if the exploration right of CBM in the area cannot be obtained within 12 months, the initial investment exploration cost cannot be capitalized, which will have a great impact on the company's performance. April 2009, the oil shares and Xinjiang Aksu region Baicheng County Government signed the agreement. The potential oil shares will be registered in the Baicheng County Xinjiang Oil Energy Co., Ltd., an advance contribution of 100 million yuan. The initial plan is to invest between 200 million and 500 million yuan from 2009 to 2010 for exploration and development of coalbed methane resources in Baicheng County.　　Affected by this news, the oil shares in the next one months to become the focus of the market, the share price from 13 yuan/share in the vicinity of 28.98 yuan/share, rose more than 100%. September 2009, the quasi-oil shares with the Xinjiang Kuche County Investment Bureau signed a CBM development Project framework contract. According to the framework contract, Kuche County government agreed to explore and develop coalbed methane resources in Kuche County, Aksu Prefecture, Xinjiang.　　The shares of the shares also saw a 20% gain. In fact, when the market was hot, quasi-oil shares on the above investment made a risk statement, said that "the company did not obtain any legal procedures and qualifications for coalbed methane exploration, the need for the autonomous Region Department of Land and resources approval; If the exploration reserves have a certain scale, the State Department of Land and Resources for approval, there are major uncertainties. "Today, the prospective oil shares also said that the company holds the Xinjiang East top industry and Trade limited liability company 36.36% of the equity innocence all transferred to top-best trade and industry natural shareholders Tian Ping Gaozhou, the transfer price of 2.1893 million yuan." Data show that the standard assets business scope, including publication printing, packaging decoration printed matter, as at June 30, 2010, top good trade and industry net assets of 6.0213 million yuan, operating income of 3.1383 million yuan, net profit is-497,500 yuan.