Independent China North East Petroleum
China North East Petroleum Holdings, Limited (NYSE Amex: NEP) is a non-state-owned oil production company that engages in oil drilling project management and the extraction of crude oil in proven oilfields in Northern China.
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Independent China North East Petroleum raises US$18m from institutional investors
China North East Petroleum (NYSE:NEP) has announced that it has agreed capital raising of US$18.4m from ‘select institutional' investors. CNE Petroleum is the only private Chinese oil company on the AMEX exchange.
The Direct Offering consists of 4 million shares CNE Petroleum common stock at $4.60 per share. Institutional investors will also receive warrants relating to 800,000 common shares in CNE Petroleum. The closing of the offering is expected to take place on or about Friday, September 18th, 2009.
China North East Petroleum currently operate four oilfields in the People's Republic of China (PRC), according to a SEC compliant report in 2008 the total geological reserves of the oilfields total 75 million barrels or 5.5 million barrels of proven reserves
Through a deal with PetroChina, CNE Petroleum has a guaranteed arrangement to sell its produced crude oil for use in the China marketplace.
China North East Petroleum Holdings Ltd. plan to use the net proceeds from the offering to finance its future business expansion plans and for general working capital purposes.
Shares in China North East have performed well in recent months on the New York's AMEX Exchange, the stock has more than doubled since May rising from $2.00 a share to Tuesday's close of $5.03.
