CHK Oil Limited provided earnings guidance for the full year ended December 31, 2019. Based on its preliminary assessment of the Company and its subsidiaries' (the "Group") unaudited consolidated management accounts for the year ended 31 December 2019, it is expected that the net loss attributable to owners of the Company for the year ended 31 December 2019 would be approximately HKD 269 million, as compared with the net loss for the year ended 31 December 2018 of HKD 59 million. The Board considers that the net loss is mainly attributable to (i) the difference between the fair values of the new shares issued at HKD 0.02 per subscription share on 8 July 2019 for the settlement of unsecured loans due from the Company to Xin Hua Petroleum (Hong Kong) Limited of HKD 80,000,000 ("HKD 80 million loan") and the HKD 80 million Loan and (ii) the impairment losses of the Group's intangible assets due to the significant decline in the price of the natural gas worldwide. The financial information as disclosed in this announcement is not yet finalised and it is subject to the further discussion among the Company, the auditors and the independent valuers. The Company is in the process of finalizing the annual results of the Group for the year ended 31 December 2019. The information contained in this announcement is only based on a preliminary assessment by the Company on the unaudited consolidated management accounts of the Group for the year ended 31 December 2019 and the information currently available to the Company which have not yet been audited or reviewed by the auditors and the audit committee of the Company and may be subject to adjustments.