LOS ANGELES and SONGYUAN, China, Sept. 4 /Xinhua-PRNewswire-FirstCall/ -- China North East Petroleum Holdings, Limited (OTC Bulletin Board: CNEH), a leading oil producing company in Northern China, announced a positive result of exploration in a previously unexplored section of He 301 area, which should significantly increase the production capabilities and reserves of the company.
The four new wells were drilled in a new section of HE 301 that had previously not been explored by the company. Based on the initial results, this area, which is about 3 km. in size, should produce approximately 4,400 barrels of oil per month and add an estimated 5 million barrels of reserves. Previously, the company had 8 operating wells in HE 301.
"I am very glad to see the great results from the new wells," said Mr. Wang, the President of China North East Petroleum. "It gives us great confidence in enlarging the development scope in this area. With these successful new wells, we believe our future earnings ability can be very strong."
"The success of the new wells is a key breakthrough for developing this area," said Mr. Zhang Xiang, Chief Engineer of China North East Petroleum. "From the new wells' logging we can identify a large amount of high quality crude oil deposited under the possible oil bearing area that can be drilled with limited financial risk."
HE 301 is one of four oil producing regions of China North East Petroleum. With the new discoveries, it brings CNEH's projected reserves to 75 million barrels.
About China North East Petroleum Holdings, Limited
China North East Petroleum Holdings, Ltd. (OTC Bulletin Board: CNEH) is engaged in the production of crude oil in Northern China. CNEH has a guaranteed arrangement with Jilin Refinery of PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates 4 oilfields with 110 producing wells in Northern China and estimates generating approximately average 1,600 barrels of high quality crude oil per day. A further well drilling project has been planned in future.
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