HARBIN, China and NEW YORK, Jan. 21 /PRNewswire-Asia-FirstCall/ -- 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 signed a contract with PetroChina's ("PTR") Jilin branch to drill 25 new wells in PTR's FuYu field. This is the Company's first drilling contract announced with PTR this year and the second signed drilling contract since December 2009.
Drilling of the 25 wells is expected to commence this month and is expected to be completed by the end of 2010. The value of this contract with PTR will be contingent upon the drilling depth of each of the 25 wells drilled.
Mr. Hongjun Wang, President of China North East Petroleum, commented, "We are delighted to sign our first drilling contract of the New Year with PetroChina. Over the last five weeks, we have secured two new drilling contracts totaling 55 new wells. We are also currently fulfilling drilling service orders that were signed by Tiancheng prior to our acquisition. Our oilfield services segment is off to a solid start this year and we continue to evaluate opportunities to increase the size and scope of our drilling services in the Jilin oilfield region and beyond."
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
