HARBIN, China and NEW YORK, Dec. 4 /PRNewswire-Asia/ -- China North East Petroleum Holdings Ltd. (the "Company" or "NEP") (NYSE Amex: NEP), a leading independent oil producing and oilfield services company in Northern China, today announced that its oilfield services subsidiary, Song Yuan Tiancheng Drilling Engineering Co. Ltd. ("Tiancheng") has ordered a 4,000 meter drilling rig to add to its operational fleet.
This new rig will be delivered this month and is expected to be fully operational by January 2010. Once the drilling rig is delivered, Tiancheng will have eight operational drilling rigs, including two with a drilling depth of 4,000 meters, three that can drill up to 3,000 meters and three with the ability to drill up to 2,000 meters.
Mr. Hongjun Wang, President of China North East Petroleum commented, "We believe the addition of a new deep well drilling rig is the right strategic move for our business at this time. PetroChina has recently decided to expand its oil refinery in the northern province of Jilin and their refining capacity is expected to increase to 10 million metric tons per year, or approximately 200,000 barrels a day, up from 7 million tons annually. PetroChina is a major customer of ours and we believe that a second deep-well rig in our fleet could allow us to drill deeper into the Jilin oilfield on their behalf, potentially benefiting both our drilling services and oil production segments."
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
Bill Zima
ICR, Inc.
Tel: +1-203-682-8200
China:
Yang Dio Zhang
Chief Financial Officer
Tel: +86-451-5558-0253
Email: dio.zhang@cnepetroleum.com
