Total 1Q09 Crude Oil Production Increases 93% to 221,688 Barrels from 1Q08
HARBIN, China and NEW YORK, April 29 /PRNewswire-Asia-FirstCall/ -- China North East Petroleum Holdings, Limited (OTC Bulletin Board: CNEH; 'CNEH'), a leading oil producing company in Northern China, today announced preliminary oil production results for the first quarter of 2009.
The Company's crude oil production in the first quarter of 2009 totaled 221,688 barrels, a 93% increase compared to 114,862 barrels in the first quarter of 2008. The total number of wells in production during the quarter was 247. The Company is planning to commence drilling additional wells in May 2009.
Mr. Hongjun Wang, President of China North East Petroleum commented, "The management team is pleased with the company's execution in the first quarter 2009, which resulted in record quarterly oil production for the Company. By increasing production efficiency and implementing water-flooding techniques, the production from our existing installed wells was very stable. We continue to concentrate on minimizing our operating expenses to maximize our profitability during this challenging economic time."
He further commented, "Although we have experienced fluctuating oil prices and the slowdown of the global economy, our management team has treated the current challenging market environment as an opportunity. In addition to concentrating on continued production growth from our four leased oil fields, we remain highly focused on the evaluation of acquisition or expansion opportunities in the petroleum exploration and production sector in order to expand our sales and margin performance. Our business remains profitable even with oil at current prices and we continue to work closely with our partner, PetroChina, to identify new opportunities to further expand our market presence in northern China."
Additional details of the 2009 first quarter performance will be reported and available in May 2009.
ABOUT CHINA NORTH EAST PETROLEUM
China North East Petroleum Holdings Ltd. 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.
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: China: Yang Dio Zhang Chief Financial Officer Tel: +86-451-5558-0253 Email: dio.zhang@cnepetroleum.com United States: Chao Jiang Executive Vice President of Finance Tel: +1-212-307-3568 Email: chao.jiang@cnepetroleum.com
China North East Petroleum Holdings, Limited
CONTACT: China: Yang Dio Zhang, Chief Financial Officer, +86-451-5558-
0253, or dio.zhang@cnepetroleum.com ; Or United States: Chao Jiang, Executive
Vice President of Finance, +1-212-307-3568, or chao.jiang@cnepetroleum.com
