Mongolia the location for drilling of 100 New wells by China North East Petroleum Subsidiary Tiancheng
28 September 2010
Drill and diamond suppliers to China should be rubbing their hands over the news that China North East Petroleum Holdings Ltd a leading independent oil producer and oilfield services company in Northern China, today announced that its oilfield services subsidiary, Song Yuan Tiancheng Drilling Engineering Co. Ltd. has signed a contract with Beijing Junlun Runzhong Technology Co. Ltd. to drill 100 new wells in Inner Mongolia.
This is the China North East Petroleum’s first drilling contract with Beijing Junlun Runzhong Technology Co. Ltd. and the sixth drilling contract signed since the acquisition of Tiancheng in the second half of 2009.
Drilling of the 100 wells is expected to commence this month and be
completed by September 2011. Tiancheng will allocate two rigs to Inner
Mongolia and each well is expected to drill 50 wells during the one-year
contract term. Through the first eight months of this year, Tiancheng has completed the drilling of 142 wells which more than doubles the number of wells completed in 2009, post acquisition.
China North East Petroleum Holdings Limited is an independent oil company
that engages in the production of crude oil in Northern China. The Company is a pioneer in China’s private oil exploration and production industry, and the first Chinese non-state-owned oil company trading on the NYSE Amex.
The Company has a guaranteed arrangement with the PetroChina to sell its
produced crude oil for use in the China marketplace. The Company currently
operates four oilfields in Northern China. The Company also recently added an oil service subsidiary through its acquisition of Song Yuan Tiancheng Drilling Engineering Co. Ltd.