China NE Petroleum Inks Drilling Contract for 48 Wells

China North East Petroleum Holdings, Limited, a leading oil producing company in Northern China, announced the signing of a new well drilling contract with a local primary drilling company.

On May 5, the company entered into a well drilling contract with Songyuan Huaying Drilling and Service Company for an additional 48 wells, to be drilled over the next 10 months. The drilling work is scheduled to start within a week. The new wells will bring the company's number of the total producing wells up to 303 after the project is completed.

"Signing this additional well drilling contract further demonstrates the management's confidence in the operational capabilities of the company. By continuing to expand our oil production capacity, together with ongoing efforts to increase production efficiency and minimize the operating expenses, we believe we can achieve sustainable growth and profitability during this challenging economic climate," said Mr. Hongjun Wang, President of China North East Petroleum.

Mr. Yanhai Gong, President of Songyuan Huaying Drilling and Service Company commented, "We are pleased with the signing of this contract, and looking forward to building a solid partnership with China North East Petroleum. We shall fulfill our commitment by delivering fast and high quality work and help the company grow faster and stronger with our support. We wish China North East Petroleum a great deal of success."