Hilong : Announcements and Notices - Voluntary Announcement

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Hilong Holding Limited ऎඤછٰϞࠢʮ̡*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1623)

VOLUNTARY ANNOUNCEMENT

This announcement is made by Hilong Holding Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

The board of directors (the "Board") of the Company is pleased to announce that Hilong Oil Service & Engineering Co. Ltd., an indirect wholly-owned subsidiary of the Company ("Hilong Oil Service & Engineering"), has recently entered into two contracts (the "Contracts") for the provision of mechanized land drilling rig services (the "Services") with Petroleum Development Oman LLC ("PDO"). The primary operational period for both Contracts is 10 years and can be further extended for a period of up to 60 months. The Group's drilling rigs, Drilling Rig HL58 and Drilling Rig HL59, will perform the Services for each of the Contracts respectively. The annual contract value under each of the Contracts is no less than USD10,000,000 per rig.

PDO is the leading exploration and production company in the Sultanate of Oman ("Oman") which delivers the majority of the country's crude oil production and natural gas supply. PDO is jointly owned by the Government of Oman (with a 60% interest), Royal Dutch Shell (34%), Total (4%) and Partex (2%). Its first economic oil find was made in 1962, and the first oil consignment was exported in 1967. PDO operates in a concession area of approximately 90,000 square kilometers (one third of Oman's geographical area), with 178 producing oil fields, 21 production stations, approximately 10,000 active wells, a diverse workforce of more than 8,800 employees comprised of 64 different nationalities and has more than 40,000 contractors.

*

For identification purposes only

The Board believes that the entering into of the Contracts with relatively long service term marked a great breakthrough of the Group's oilfield services in the overseas market, especially the region of Middle East. It also demonstrates the Company's established relationships with large oil producers and has proven their recognition. The Board considers that entering of the Contracts has further injected new impetus to the Group's business development in overseas and Middle East markets.

By order of the Board of

Hilong Holding Limited

ZHANG Jun

Chairman

Hong Kong, 17 January 2018

As at the date of this announcement, the executive directors of the Company are Mr. ZHANG Jun and Mr. WANG Tao (ӓᏹ ); the non-executive directors are Ms. ZHANG Shuman, Mr. YUAN Pengbin, Mr. LI Huaiqi and Mr. YANG Qingli; and the independent non-executive directors are Mr. WANG Tao (ˮᏹ ), Mr. WONG Man Chung Francis, Mr. LIU Haisheng and Mr. SHI Zheyan.