HARBIN, China and NEW YORK, Dec. 14 /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 signed a contract with PetroChina's Jilin ("PTR") branch to drill 30 new wells in PTR's MIN 52 oil field.
Drilling of the 30 wells is expected to commence in January 2010 with an expected completion date in June 2010. The value of this contract with PTR will depend on the drilling depth of each of the 30 wells drilled.
"We are pleased to sign this new drilling contract with PTR, which is our first since we acquired this business in September 2009," commented Mr. Hongjun Wang, President of China North East Petroleum. "This assignment to drill 30 new wells is a standard order from PTR and our other oilfield services customers. Most of Tiancheng's drilling contracts generally range between 20-40 installed oil wells. Tiancheng's drilling utilization rate is currently at capacity in the 2009 fourth quarter and we have existing drilling contracts that will carry over into 2010. We remain focused on maximizing Tiancheng's utilization rates as we head into the New Year and expect that our total number of drilling rigs along with the varied drilling depths of the rigs in our portfolio can lead to solid results in our services business next year. We are encouraged with our progress and are hopeful that we'll have additional drilling contracts to announce in the future."
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
