09:24     SOUTH SEA PETRO<00076>-Announcement&Resumption of Trading(1)        

    The Stock Exchange of Hong Kong Limited takes no responsibility for the   
    contents of this announcement, makes no representation as to its          
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    SOUTH SEA PETROLEUM HOLDINGS LIMITED                                      
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 076)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    UNUSUAL PRICE AND TRADING VOLUME MOVEMENTS                                
    AND                                                                       
    RESUMPTION OF TRADING                                                     
                                                                              
    The directors of the Company is pleased to announce that on 7 April       
    2005, Global Select Limited, a wholly owned subsidiary of the Company,    
    entered into a share purchase agreement with three individual Indonesia   
    citizens, who in aggregate owned 70% interest of PT. Cahaya Batu Raja     
    Blok, to acquire from them a 65% interest in the issued share capital     
    of PT. Cahaya Batu Raja Blok for an aggregate cash consideration of       
    US$5,800,000.                                                             
                                                                              
    PT. Cahaya Batu Raja Blok is a company incorporated in Indonesia. The     
    sole asset of PT. Cahaya Batu Raja Blok is the Production Contract        
    signed with the Department of Petroleum (BPMIGAS) of the Indonesian       
    government. Pursuant to the Production Contract, PT. Cahaya Batu Raja     
    Blok will explore and develop petroleum and natural gas in Air Komering   
    Block, an area consists of approximately 4,110 square kilometers          
    located in Southern Sumatra, Indonesia for 30 years.                      
                                                                              
    The Acquisition constitutes a discloseable transaction of the Company     
    under the Listing Rule. A circular containing detailed information of     
    the Acquisition will be dispatched to Shareholders as soon as             
    practicable.                                                              
                                                                              
    The directors of the Company have noted the recent increase in the        
    price and the trading volume of the shares of the Company and wish to     
    state that they are not aware of any reasons for such unusual movements   
    in price and trading volume save for the matters disclosed in this        
    announcement.                                                             
                                                                              
    Save as disclosed above, the directors of the Company confirm that        
    there are no negotiations or agreements relating to intended              
    acquisitions or realizations which are discloseable under Rule 13.23 of   
    the Listing Rules, neither is the Board aware of any matter               
    discloseable under the general obligation imposed by Rule 13.09 of the    
    Listing Rules, which may be of a price-sensitive nature.                  
                                                                              
    Made by the order of the Board of South Sea Petroleum Holdings Limited,   
    the directors of which individually and jointly accept responsibility     
    for the accuracy of this statement.                                       
                                                                              
    Trading in the shares of the Company has been suspended at the request    
    of the Company with effect from 2:30 p.m. on 7 April 2005 pending the     
    release of this announcement. An application has been made to the Stock   
    Exchange for resumption in trading of the shares with effect from 9:30    
    a.m. on 14 April 2005.                                                    
                                                                              
    THE AGREEMENT DATED 7 APRIL 2005                                          
                                                                              
    Parties to the Agreement:                                                 
                                                                              
    Purchaser:  Global Select Limited, a company incorporated in the          
    British Virgin Islands with limited liability, is a wholly-owned          
    subsidiary of the Company                                                 
                                                                              
    Vendors:  Three individual shareholders of PT. Cahaya Batu Raja Blok, a   
    company incorporated in Indonesia with limited liability. The three       
    shareholders are individual Indonesia citizen who in aggregate owned      
    70% interest of PT. Cahaya Batu Raja Blok The Company confirms that, to   
    the best of the directors' knowledge, information and belief having       
    made all reasonable enquiries, the Vendors are third parties              
    independent of the Group and connected person of the Group (as defined    
    under the Listing Rules).                                                 
                                                                              
    Assets acquired:                                                          
                                                                              
    65% of the issued share capital of PT. Cahaya Batu Raja Blok. PT.         
    Cahaya Batu Raja Blok will be treated as a non wholly-owned subsidiary    
    of the Company in the Company's financial statements.                     
                                                                              
    Value of assets acquired: