2. CEO (NYSE) Energy Sector Evan Farber/Brendan McMenamin Brian Boyd Jacek Kornas Adam Sheetz Gautam Shringapure China National Offshore Oil Company

3. Snapshot Slide ► Our target price is: $33.50 ► Appropriate purchase price: $26 ► Size: 10.6 B ► Beta: NA ► Dividend:.88/share

4. Company Description ► CNOOC Limited is an oil & gas company (headquarters in Hong Kong) focused on exploration, development and production offshore China. ► Incorporated in 1982 to conduct exploration and production in China's offshore areas, both independently and as the exclusive Chinese partner for foreign entities.

5. Management ► Liucheng Wei Chairman, CEO ► Shouwei Zhou Pres, Director ► Mark Qui, Ph.D. CFO, Sr. VP ► Ke Ru Exec. VP ► Yunshi Cao Sr. VP, Gen. Counsel, Sec.

6. Competitive Landscape ► Three main oil & gas companies in China: ► China National Petroleum Corporation (CNPC), ► China National Petrochemical Corporation (Sinopec) ► CNOOC - Are the dominant offshore petroleum company, the second largest natural gas company and the third largest petroleum company in China. ► Foreign outsiders – Have to go through CNOOC, though

7. Key Advantages ► Largest Offshore exploration of oil & natural gas in China ► Dominant producer of crude oil & natural gas and only company permitted to conduct exploration and production with international oil & gas companies offshore China.

8. Company Goals ► Increase production through the development of undeveloped reserves ► Add to their reserves through a balance of independent exploration and production sharing contracts ► Capitalize on growing demand for natural gas in China ► Continue to improve operational efficiencies and lower production costs through the utilization of technology.

9. Current News ► Japan's largest oil refiner Nippon Oil Corp bought the 1st export cargo of Chinese Wenchang oil ► The Wenchang project, an offshore oil field, is 60 % owned by CNOOC Ltd, with Canadian Husky Energy Inc holding 40%. ► As well, partners with Phillips on oilfield NW of Bohai Sea, China’s 2 nd largest oilfield ► Plans to build its first refinery with Royal Dutch/Shell. ► Build chemicals plant in Huizhou with RD/Shell ► It has also signed an oil exploration contract with CPC of Taiwan.

10. Financial Ratios ► Market Cap: 10,661,990,000 ► Daily Volume: 60,000 ► Dividend: $0.88 ► 52-Week High: $30.66 ► 52-Week Low: $17.35 ► EPS: 2.04 TTM ► 1yr Projected EPS: 2.71

11. Financial Ratios CompanyIndustrySectorS&P 500 Gross Margin85.3749.2535.9047.47 Profit Margin34.421.704.7210.40 ROA14.490.954.286.42 ROE20.832.007.1718.31 ROI16.291.085.3710.28

12. Financial Ratios CEOSinopecSectorS&P 500 Current Ratio4.75.0841.291.64 Quick Ratio4.300.290.881.11 LT Debt to Equity 0.190.160.440.74 Total Debt to Equity 0.190.250.510.98 Free Cash Flow380.3M-889.0M__

13. Financial Ratios CompanyIndustrySectorS&P 500 P/E12.4037.6927.9824.74 Price to Free Cash Flow 9.059.4711.4817.64 Dividend Yield 4.062.702.822.19

14. Why Should PSIA Invest Now? ► China’s joining of the WTO marks opening of huge market, particularly for auto industry which is set to explode! ► As well, taking advantage of newly open markets in Japan & E. Asia ► Want to diversify the PSIA portfolio with ADR (foreign investment)

15. Stock Chart

16. Team Recommendation ► Our Target Price: $33.50 ► Appropriate Purchase Price: $26-27 ► Buy now!