ZhongRong Group-Canada Energy

Canadia Capital Energy Corporation

The overseas energy development is an important strategic plan of ZhongRong Group. Our mission is “where there is a demand there is our investment direction”. In the context of global energy pinch, we participated in the tender for the oil blocks in Williston Basin, Saskatchewan, Canada. According to relevant national provisions, we submitted the report on the oil investment project in Canada to Shanghai government and National Development and Reform Commission, and obtained the approval and encouragement of the government departments. They recommended the domestic top oil geologist team to provide technical help. Meanwhile, the group employed a Canadian geologist team to study geological information of bid oil blocks and, determine the bid blocks and bidding strategies, and successfully auctioned the first block for exploration and development of oil and gas.

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In 2006, the National Development and Reform Commission formally approved the oil exploration, exploitation and sales of ZhongRong Group in Saskatchewan, Canada. After the approval by the SMERT and Ministry of Commerce, ZhongRong Group established CCEC, which is a non-state-owned multinational energy development enterprise in North America. After careful preparations, the drilling plan was implemented. On Dec. 29, 2006, the first drilled well produced the first barrel of oil. This is a successful prelude for ZhongRong Group in energy development.

In 2007, CCEC constructed infrastructures at full blast, organized an oil geologist team, continuously auctioned and reserved oil and gas blocks for oil and gas exploration and development, and implemented the drilling plan. Through competitive bidding, CCEC obtained the right of oil and gas exploration and development in land with the accumulated area of 40,000 acres. The crude oil reserves are rich based on the study and analysis of the existing geological exploration data, and evaluation by the domestic top research institute of petroleum exploration and oil geologists from Canada.

In 2008, the National Development and Reform Commission approved the phase II investment plan of petroleum exploitation in Canada. Through overall exploration and development and drilling, the second and third oil production areas of the group will be built in the Canada. Currently, CCEC has completed one uncompartmentalized oil area, and a complete oil development system has been formed, involving in block geological reservoir research, exploration, drilling, field management and sales. With the erection of ground facilities in place, the daily output will be increased.

Currently, CCEC has been granted with a total area of about 100,000 acres land for oil exploitation, mainly in Williston Basin, Southeast Saskatchewan, 200km from Regina. The assets are mainly distributed in strata boundaries of Frobisher, Kisbey, Alida and Tilston. The strata in Bakken and Torguay have additional potential. All the CCEC assets including productive and prospective areas have almost 100% light crude oil.