Kunlun Energy : Announcements and Notices - Announcement in Relation to the Connected Transaction of the Disposal of All Equity Interests in fortunemate Assets Limited

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

KUNLUN ENERGY COMPANY LIMITED

(incorporated in Bermuda with limited liability)

׺Կঐ๕Ϟࠢʮ̡

(Stock Code: 00135.HK)

ANNOUNCEMENT

IN RELATION TO THE CONNECTED TRANSACTION OF THE DISPOSAL OF ALL EQUITY INTERESTS IN FORTUNEMATE ASSETS LIMITED

Reference is made to the announcement of Kunlun Energy Company Limited (the "Company") dated 29 December 2017 (the "Announcement"), in relation to the Sale and Purchase Agreement entered into by CNPC International (Kura) Ltd. ("CNPC Kura") and the Company, pursuant to which the Company, as the Vendor, agreed to transfer 100% equity interests in Fortunemate Assets Limited held by the Company to CNPC Kura, as the Purchaser. Unless otherwise defined herein, capitalized terms used herein shall have the same meanings as defined in the Announcement.

With the Completion expected to take place on 31 March 2018, the Directors conducted a preliminary assessment primarily based on the Consideration and the financial information of the Target Company set out in its audited financial statements for the year ended 31 December 2016 prepared in accordance with Hong Kong Financial Reporting Standards, based on which the Company would expect to record a gain on the Disposal of approximately US$21,000 in the consolidated financial statements for the year ending 31 December 2018 as a result of the Disposal.

The actual amount of the gain/loss on the Disposal is subject to, among other things, the actual operating results of the Target Company for the period from 1 January 2017 to the Completion Date, potential adjustments on the Consideration as provided under the Sale and Purchase Agreement, and/or any taxes or expenses in relation to the Disposal.

Save as disclosed above, the contents of the Announcement remain unchanged.

By Order of the Board

Kunlun Energy Company Limited

Cheng Cheng

Company Secretary

Hong Kong, 22 January 2018

As at the date of this announcement, the Board comprises Mr. Ling Xiao as the Chairman and Executive Director, Mr. Zhao Yongqi as the Chief Executive Officer and Executive Director, Mr. Zhao Zhongxun as Executive Director, Mr. Zhou Yuanhong as Executive Director, Mr. Miao Yong as Executive Director, and Mr. Li Kwok Sing Aubrey, Dr. Liu Xiao Feng and Mr. Sun Patrick as Independent Non-Executive Directors.