China North East Petroleum Subsidiary Tiancheng Signs Contract to Drill 100 New Wells
HARBIN, China and NEW YORK, Sept. 28 /PRNewswire-Asia-FirstCall/ -- China North East Petroleum Holdings Ltd. (the "Company" or "NEP") (NYSE Amex: NEP), a leading independent oil producer 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 Beijing Junlun Runzhong Technology Co. Ltd. ("JLRZ") to drill 100 new wells in JLRZ's oilfield in Inner Mongolia. This is the Company's first drilling contract with JLRZ and the sixth drilling contract signed since the acquisition of Tiancheng in the second half of 2009.
Drilling of the 100 wells is expected to commence this month and be completed by September 2011. Tiancheng will allocate two rigs to Inner Mongolia and each well is expected to drill 50 wells during the one-year contract term. The value of this contract with JLRZ will be contingent upon the drilling depth of each of the 100 wells drilled.
The Company's executive management team had the following comments regarding Tiancheng's new well drilling contract: "We are very pleased to have signed our sixth drilling contract since we acquired Tiancheng in 2009. Through the first eight months of this year, Tiancheng has completed the drilling of 142 wells which more than doubles the number of wells we completed in 2009, post acquisition. With more drilling contracts under negotiation, we expect that Tiancheng will continue to contribute significantly to our top line growth going forward."
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, including but not limited to those relating to the Company's or management's intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future, including the impact of the restatement, timing of filings with the SEC and other statements that are not historical facts are forward-looking statements that are based on current expectations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include delays and uncertainties that may be encountered in connection with the restatement, final audits and reviews by the Company and its auditors, and other risks described in the Company's annual report on Form 10-K for the year ended December 31, 2008 and its other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Investors should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement and the Company undertakes no duty to update any forward-looking statement.
For more information, please contact:
Bill Zima
ICR, LLC.
Tel: +1-203-682-8233
SOURCE China North East Petroleum Holdings Limited
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