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China North East Petroleum Purchases Mongolian Oil Rights

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January 21, 2011

China North East Petroleum Holdings Ltd. (NYSE Amex: NEP) plans to acquire Sunite Right Banner Shengyuan Oil and Gas Technology Development Co. Ltd., an operator with exclusive exploration and drilling rights in the Durimu oil field in inner Mongolia, for US$43.4 million.

The deal value consists of RMB 70 million (approximately US$10.6 million) in cash and 5.8 million shares of NEP restricted common stock, which carries a value of $32.8 million based on a 30-day trading average from Dec. 6, 2010 through Jan. 7, 2011. 

Shengyuan's primary assets comprise three ...

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