HARBIN, China and NEW YORK, March 23 /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 30 new wells in PTR's FuYu field. This is the Company's second drilling contract with PTR announced this year and the third drilling contract signed since December 2009.
Drilling of the 30 wells is expected to commence this month and conclude by March 2011. The value of this contract with PTR will be contingent upon the drilling depth of each of the 30 wells.
Mr. Hongjun Wang, President of China North East Petroleum, commented, "Our Tiancheng oilfield services subsidiary is pleased to be signing its second drilling contract with PetroChina this year and third contact in the last four months. The utilization rate of our drilling services segment continues to rise with this new contract, and brings the total number of new wells drilled under contract since December 2009 to 85. We are pleased with Tiancheng's progress and are hopeful that additional drilling contracts will be signed in the coming months."
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: [email protected] ICR, Inc. Bill Zima Tel: 203-682-8200 China: Yang Dio Zhang Chief Financial Officer Tel: +86-451-5558-0253 Email: [email protected]
SOURCE China North East Petroleum Holdings Limited