HARBIN, China and
Tiancheng is a leading oil drilling and services company with seven rigs in operation. With approximately 320 employees, it has the capacity to drill 220 wells on an annual basis. Tiancheng is the largest of three PetroChina- licensed private drilling operators based on the total number of drilling rigs. The company counts PetroChina and two private oil producers as its main customers. PetroChina represents the majority of the company's revenue and NEP has not utilized Tiancheng for drilling services in the past. In 2008, Tiancheng generated revenue of approximately
"We are extremely pleased with this acquisition, which transforms China North East Petroleum into a more diversified oil exploration and production company," commented Mr.
"With the addition of Tiancheng, we are building a platform that strengthens our relationships with SOEs, enhances our business development opportunities, reduces our exposure to oil price volatility and further establishes NEP as a major player in
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
The Company has a guaranteed arrangement with the PetroChina to sell its produced crude oil for use in the
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:
Executive Vice President of Finance
Yang Dio Zhang
Chief Financial Officer
SOURCE China North East Petroleum Holdings Limited