Located in the eastern part of the central China, Henan province is known as “Henan” because of its most parts lying south to Yellow river. Also it is called as “zhongzhou” or Zhongyuan, for which “Yu” is short. The oil and gas exploration in Henan begun in 1955. Nanyang, Biyang and Dongpu sags were put into development in Oct.,1978 and Jul.,1979. Henan and Zhongyuan Petroleum Administration Bureaus are responsible for oil and gas exploration and development in Henan province. Remarkable oil and gas reserves have been proven, some oil and gas production capacity has been formed and sales pipelines have been laid in Henan.

With its headquarters based in Puyang city of Henan province, Zhongyuan oilfield is located in Dongpu sag of the southern Linqing depression, Bohai Gulf basin, across the limit between Henan and Shandong provinces. Its geological structure is a part of Bohai Gulf subsidence zone, being as a rift basin formed by faulting and called as Dongpu sag geologically. The basin covers an area of about 5,300 km2 with a northeastern – southwestern strike from Xin county of Shandong in north to Lankao of Henan in south.

The oil and gas exploration in Zhongyuan oilfield begun during 1955-1957. Zhongyuan oilfield was discovered as a result of commercial oil flow found in well Puchan-1 on Sept.7, 1975. By the end of 1997, there were 16 oilfields and 1 gas field discovered in total such as Wenliu, Pucheng and Qiaokou with an accumulative proven OOIP of 4.68 ×108 t and OGIP of 380.7 ×108 m3 respectively. Its oil and gas productions were 402.07×104 t and 5.89 ×108 m3 respectively.

Zhongyuan oilfield has abundant oil and gas resources. Compared with other sags in Bohai Gulf basin, Dongpu sag under development features a deep buried depth of source rock and highly thermal maturation. It is a basin very few in the eastern China enriched with both oil and gas accumulation and has a broad exploration prospect.

The successful IPO of “Zhongyuan Oil & Gas” in Shenzhen on 10th November, 1999 established the position of the stock of “Zhongyuan Oil & Gas Hi-tech”.