HARBIN, China and NEW YORK, Jan. 13 /PRNewswire-Asia-FirstCall/ -- China North East Petroleum Holdings Limited (the "Company") (NYSE AMEX: NEP), a leading independent oil producing and oilfield services company in Northern China, today announced that it has repaid in full its 8% Secured Debenture (the "Debenture") plus accrued interest to Lotusbox Investments Limited Investor ("Lotusbox").
As of January 11, 2010, the total amount owed on the $15.0 million Secured Debenture issued in February 2008 was approximately $10.7 million, which includes remaining principal plus accrued interest. In addition to using the proceeds from its December 2009 public offering, the Company also applied the aggregate exercise price of approximately $2.0 million from Lotusbox's exercise of Series B Common Stock Purchase Warrants to offset the full repayment of the Secured Debenture. The Debenture would have matured on February 28, 2012. No early termination or prepayment penalties were incurred by the Company in connection with such termination.
Mr. Hongjun Wang, President of China North East Petroleum commented, "We are pleased to retire our debt obligations to one of our major investors. This transaction will strengthen our balance sheet and further enhance our capital structure ultimately providing us with greater flexibility to support our strategic expansion and development of new growth initiatives."
Additional information about this transaction can be found in the Company's most recent 8-k filing with the SEC.
ABOUT CHINA NORTH EAST PETROLEUM
China North East Petroleum Holdings Limited is an independent oil company that engages in the production of crude oil in Northern China. The Company is a pioneer in China's private oil exploration and production industry, and the first Chinese non-state-owned oil company trading on the NYSE Amex.
The Company has a guaranteed arrangement with the PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates four oilfields in Northern China. The Company also recently added an oil service subsidiary through its acquisition of Song Yuan Tiancheng Drilling Engineering Co. Ltd. ("Tiancheng"). For more information about the Company, please visit http://www.cnepetroleum.com .
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
For more information, please contact:
United States:
Chao Jiang
Senior Vice President, Corporate Finance
Tel: +1-212-307-3568
Email: chao.jiang@cnepetroleum.com
ICR, Inc.
Bill Zima
Tel: +1-203-682-8200
China:
Yang Dio Zhang
Chief Financial Officer
Tel: +86-451-5558-0253
Email: dio.zhang@cnepetroleum.com
