China North East Petroleum Cites Production Output of 354,000 Barrels
China North East Petroleum Holdings Limited has announced the successful completion of its annual shareholders meeting held on September 2, 2008 at the Company's corporate office in Harbin, China.
Attendants at the meeting included CNEH executives, the Company's Board of Directors, and company shareholders. Harmony Capital, one of CNEH's lead investors, sent two representatives from its Singapore and Hong Kong offices to the annual meeting.
CNEH stockholders of record as of July 10, 2008 voted on the following proposals at the annual stockholders meeting, both of which were ratified with a strong majority of the vote:
- The election of five members of the Board of Directors to hold office until the Annual Meeting of Stockholders in 2009, and until their successors are duly elected and qualified. The Directors are Wang Hongjun, Yu Liguo, Li Jingfu, Robert Bruce and Edward Rule. The majority of these Directors are independent and all five have been serving on the Board prior to the annual shareholder meeting.
- The ratification of the appointment of Jimmy C. H. Cheung & Co. as CNEH's independent auditors for the fiscal year ending December 31, 2008.
Hongjun Wang, President of China North East Petroleum commented, "We continue to build a solid foundation for our business and are encouraged by the support received for each proposal at our annual stockholders meeting."
Alan Mercer Executive Director and head of the Hong Kong office of Harmony Capital, one of CNEH's largest shareholders and an annual meeting attendee stated, "We are very satisfied with the Company's progress since we made our $15 million investment at the end of February 2008. We were happy to hear from CNEH management that its drilling program is proceeding well and its production targets are exceeding the Company's original plan.
Wang of China North East Petroleum continued, "We continue to focus on expanding our total oil production output. Since the beginning of the year, we have drilled a total of 46 new wells and as of September 2, 2008, our number of producing wells now totals 203. The contribution of our existing wells year to date has resulted in 48,000 tons of crude oil, which is equivalent to 354,000 barrels. Our monthly production continues to accelerate-in August we produced over 7,600 tons of oil (approximately 56,000 barrels), which is our largest monthly oil production output to date.
"As we look to the remainder of the year, we are pleased to have exited the rainy season in China's northeastern region and are now entering the optimum season for drilling and the installation of new wells. Our plan is to drill 10 new wells each month from September through December. The average well takes 23 days to install before it produces oil. We believe we can finish the year with over 240 wells which would result in a 53% increase compared to 157 at the end of 2007.
"As we continue to maximize our performance, we also remain focused on elevating our profile in the U.S. A listing on a major exchange is a high priority for our company and we are hopeful we can achieve this goal by the end of the year. We also look forward to increasing our exposure in the U.S. capital markets by participating in several institutional investor events in the coming months.
"Overall, CNEH has a unique and highly compelling opportunity in the Chinese marketplace. We are a pioneer in China as a private oil producer and are very well positioned to further maximize our productivity and expand our presence in the region. The demand for domestic oil production in China continues to grow very steadily which bodes well for our business. We enjoy the benefits of a strong partnership with PetroChina and have a highly scalable, efficient and profitable operation. As an emerging leader in China's oil drilling and production business, CNEH is well positioned for healthy growth in the months and years ahead," concluded Wang.
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