UEG Held 2014 Annual General Meeting in HK

The 2014 annual general meeting of UEG was held in Hong Kong on May 29th, 2015. The meeting was chaired by Mr. Zhang Hongwei, Chairman of the Board, and attended by all board members, Chief Financial Offcier Wilson Cheng as well as external accountants Mr. Poh Weng Wong and Mr. Stephen Wong, partner of RSM Nelson Wheeler. All resolutions were passed with around 10 billion majority votes, nearly 100% attending shareholders voted in favor.

As of December. 31st 2014 United Energy Group Limited has a recorded turnover and profit being 612 million HK dollars and 181 million HK dollars respectively, an increase of 27.8% and 54.7% respectively over last year, with profit of each share surging 50.2% to 14 HKD. UEG came to the seventh among all energy companies listed on HK Stock Exchange in the profit ranking, ranked the 185th among over 1600 listed companies, and was one of top 200 with highest profits earned in 2014. The results, came in a difficult year where international oil price plummeted, fully justifying the improvements that UEG’s management has made in terms of ideas of doing business, technical innovation and level of management, of which shareholders speak highly.

Chairman Mr. Zhang noted after the meeting that profits of UEG surged 50% to 181 million HK dollars, and profits from existing projects are expected to continue rising, and UEG will also continue looking for the right opportunities to invest its 249 million HKD cash on hand.

Ever since UEG acquired and took over the Pakistani oil/gas project from BP in 2011, the daily output has increased from 21,706 BOEs (average for the year) in 2011 to 48,900 BOEs in 2014, increasing more than 1.3 times over a period of three years. This demonstrates completely that UEG has become a first-class company in terms of oil and gas production technology, execution and management, and we have the capability and capacity to continue to expand to the wider fields and in higher level, including execution of M & A as an operator in the future. In the meantime, exploration and production of the Pakistan Project is gradually moving from the Badin Block to the new MKK Block, complemented by the completion and startup of Naimat Phase 5 project in 2015, UEG’s natural gas processing capacity will rise by 1.6 MMscfd, consolidating its ability to generate more income and cash flow in the foreseeable future.

Despite of a plunge in the international oil price by over 50% from Q4 last year, which provided a big blow to the businesses of petroleum and natural gas producers, However, UEG, brought production cost per barrel and other operating costs down sustainably by improving management and optimizing operations. As a result, the gross profit rate, operating margin and net profit rate in 2014 achieved 53.8%, 38.5% and 29.7%. The trend is expected to continue in 2015, plus the increase of 1P reserves and production expectations affords the management team strong confidence in the Group’s future.

At present, most of the income is generated from the Pakistan Project thanks to the attention that the Pakistani government has been giving to the project. The big gap in energy supply has seriously restricted local economic growth, and by taking huge opportunities brought by China’s Belt and Road Initiative, we have reason to believe that we will achieve even bigger success in expanding our businesses in Pakistani with the support given by both governments