CNEH check out the news. I think this has more to go..a lot more
Press Release Source: China North East Petroleum Holdings, Limited
China North East Petroleum Holdings, Limited Reports Second Quarter 2007 Results
Wednesday August 22, 8:00 am ET
Net Income Increased by 746%
LOS ANGELES and SONGYUAN, China, Aug. 22 /Xinhua-PRNewswire-FirstCall/ -- China North East Petroleum Holdings, Limited (OTC Bulletin Board: CNEH - News), an leading oil producing company in Northern China, announced financial results for the second quarter of 2007, which Sales Revenue and Net Profit increased 221% and 746% respectively.
Key Highlights for the three months ended June 30, 2007:
-- Revenues increased 221%
-- Net Income increased 746%
-- EPS increased to $0.04 from $0.01
For the 6 months ended June 30, 2007:
-- Revenues increased 151%
-- Net Income Increased 551%
-- EPS increased to $0.05 from $0.01
"We are very pleased with our company's latest financial results," commented Mr. Hongjun Wang, President of China North East Petroleum. "We successfully completed a large scale well drilling project. At the present time, we have more than 110 wells in production. A new drilling project will commence in the near future."
"We have also built our management team," Mr. Hongqun Wang continued, "by recruiting key experienced personnel from Petrol China, the State owned Oil Company. The experience they brought to the company improved the overall production efficiency dramatically. We have also raised the average well production and output by constantly investing in new oil production equipment and technologies."
Financial Details
Revenues were $4,097,554 for the three months ended June 30, 2007, compared to $1,276,634 for the quarter ended June 30, 2006, an increase of $2,820,920, or 221%. This increase was due to an increase in crude oil production. Our output of crude oil for the three months ended June 30, 2007 was 8,364.8 tons compared to 2,583.2 tons for the same quarter in 2006. The increase in production was mainly because of the new wells being brought into production.
Cost of Sales increased by 259% from $550,425 for the three months ended June 30, 2006 to $1,976,519 for the three ended June 30, 2007. The increase in cost of sales resulted primarily from the increase in production.
Operating Expenses increased by 7% from $327,166 for the three months ended June 30, 2006 to $349,223 for the three months ended June 30, 2007. The slight increase was due primarily to increase in depreciation of fixed assets.
Net Income increased by 740% from $148,243 for the three months ended June 30, 2006 to $1,253,567 for the three months ended June 30, 2007, primarily as a result of a 221% increase in sales. Earnings per share were $0.04 compared to $0.01 in the prior year.
For the six months ended June 30, 2007:
Revenues were $5,977,501 compared to $2,383,512 for the same period 2006, an increase of $3,593,989, or 150%. This increase was due to an increase in crude oil production. Our output of crude oil for the six months ended June 30, 2007 was 12,732 tons compared to 5,086.4 tons for the same period in 2006. The increase in production was mainly because of the new wells being taken into production.
Cost of sales increased by 147% from $1,160,469 for the six months ended June 30, 2006 to $2,862,291 for the six months ended June 30, 2007. The increase in cost of sales resulted primarily from the increase in production.
Operating Expenses increased by 13% from $573,301 for the six months ended June 30, 2006 to $648,640 for the same period 2007.
Net Income increased 551% to $1.540, 930 from $236,816. Earnings per share were $0.05 compared to $0.01 in the prior period.
Cash flow provided by operating activities was $4,203,145 for the six months ended June 30, 2007, compared to $967,087 for the same period 2006.
"Every team member of the company is delighted to see their hard work has delivered solid results," Mr. Wang stated. "It further proves our company's true potential for creating values for our shareholders. We look forward to continuing strong results in the future."
China North East Petroleum Holdings Limited and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income
For the three months and six months ended June 30, 2007 and 2006
(Unaudited)
Three months ended Six months ended
June 30 June 30
Restated Restated
2007 2006 2007 2006
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