China North East Petroleum Holdings Limited, an oil producing company in Northern China, announced that as part of its $15 million debenture financing agreement with Lotusbox Investments Limited, announced on March 3, 2008, certain post closing conditions have been met allowing for the release of $13.25 million from escrow. These proceeds plus the initial funding of $1.75 million completes the Company's $15 million financing with Lotusbox, a wholly owned subsidiary of Harmony Investment Fund Limited.
The Company intends to use approximately US$10 million of the net proceeds to finance a portion of the cost for the drilling of 100 new wells within its four Jilin-based oilfields that are under lease from PetroChina with the remaining net proceeds to be used for potential acquisitions, to implement mature technologies to increase production of existing wells and for general working capital purposes.
This transaction is described in more detail in the 8-K and other supporting documents filed with the Securities and Exchange Commission on March 3, 2008.
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