We would like to highlight China North East Petroleum Ltd. (OTCBB: CNEH). The company is engaged in the production of crude oil in Northern China. The Company has a guaranteed arrangement with the Jilin Refinery of PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates four oilfields in Northern China.
In the company’s news yesterday,
China North East Petroleum Holdings Limited announced preliminary crude oil production figures for the second quarter. Crude oil production increased 119% to 135,193 barrels, compared to 61,732 barrels for the same period in 2007. This also represents an 18% sequential increase over 1Q 2008. The company added 27 new wells during the quarter, bringing the total well count up to 192.
”The second quarter was another strong quarter for our business,” stated Mr. Hongjun Wang, President of China North East Petroleum. “We are particularly pleased to report record production results this quarter, as the second quarter is traditionally one of our slower quarters during the fiscal year. Our new wells added during the quarter were supported by the cash flow generated from our existing wells and we utilized very little cash from the $15 million financing we closed in March 2008. We continue to make good progress in our business and look forward to a strong second half of the fiscal year.”
China North East has a unique arrangement with PetroChina Group (PTR), which has guaranteed to purchase China North East’s output at prevailing market rates through 2022, with PTR entitled to 20% of production through 2012 and 40% of production thereafter in exchange for leasing rights. China North East has never drilled a dry well and targets a total well count of 650 on the land it currently controls. The company has stated its interest in acquiring more leasing rights.
About QualityStocks
QualityStocks, based in Scottsdale, Arizona is a free service that collects data from hundreds Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their advertising efforts and now has over 500,000+ subscribers that receive The Daily Stock Newsletters.
To sign up for “The QualityStocks Daily Newsletter” please visit http://www.qualitystocks.net/
Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
