LOS ANGELES and SONGYUAN, China, July 5 /PRNewswire-FirstCall/ -- China North East Petroleum Holdings Limited (OTC Bulletin Board: CNEH), an oil producing company in Northern China, today announced successful onshore exploration results for three significant wells drilled in the Company's Qian112 oil field. The wells further expand and delineate the existing areas of operation and production in the field. On July 3rd, the drilling team of Rising Sun Oil Exploration and Production Ltd. successfully completed the drilling work of three new wells (well reference number Qian5-2, Qian3-5 and Qian12-16). The "Qian5-2," a 5,905-foot exploratory well has encountered a 59-foot net pay horizon base on well log analysis. The well also confirmed additional pay stringer in an upper reservoir previously discovered. Additionally, by analyzing the geologic drilling log and well log, our engineers expect that the Qian5-2 well will be possibly producing around 35-38 barrels of oil, which is on the same production output level to Qian12-14. The geological logging analysis of the other two wells (Qian3-5 and Qian12-16) will be available and updated soon. In an ongoing effort, the company is planning to start the frac job on these three new wells in next 10 days. The fracturing team from Jilin Refinery has been arranged for conducting such job. Meanwhile, additional wells are planned to be drilled in Qian112 Field this year to further exploit the production potential of the field. "These successes underscore our corporate exploration and production strategy of focusing on core, high-impact opportunities that support our base business," said Hongjun Wang, president of China North East Petroleum Holdings Limited. "We are very pleased with the work performance and well drilling result of our drilling team; Rising Sun truly continues their success in Songyuan Region and delivering their commitment to our company's well drilling program. Subsequent updates will be available regarding this ongoing drilling project." About China North East Petroleum Holdings Limited China North East Petroleum Holdings Ltd. (OTC Bulletin Board: CNEH) is engaged in the production of crude oil in Northern China. CNEH has a guaranteed arrangement with Jilin Refinery of PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates 21 producing wells in Northern China and estimates generating approximately an average 420 barrels of high-quality crude oil per day. By the end of 2007, CNEH plans to finish drilling another 81 wells, resulting in a total of 102 producing wells. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, included or incorporated by reference herein relating to management's current expectations of future financial performance, continued growth, changes in economic conditions or capital markets and changes in customer usage patterns and preferences are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue" or similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that our projections will be achieved. Contact:
(909) 468-1858 James Jiang jiangcneh********** China North East Petroleum Holdings Limited This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com. SOURCE China North East Petroleum Holdings Ltd.
Contact Information: James Jiang, China North East Petroleum Holdings Limited, +1-909-468-1858, jiangcneh**********
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