SOURCE: China North East Petroleum Holdings Ltd.

May 03, 2006 09:00 ET

China North East Petroleum Holdings Ltd Announces Launch of New Corporate Website

LOS ANGELES, CA and HARBIN, CHINA -- (MARKET WIRE) -- May 3, 2006 -- China North East Petroleum Holdings, Limited (OTC BB: CNEH) today announced the launch of its new corporate website. The new website,, includes a detailed corporate profile, projects that the company is undertaking, oil industry news, both in China and other areas around the globe, oil glossary, and an operations report which will be updated from time to time.

A primary focus of the new site is to assist in communicating with the company's existing shareholders, potential business partners, such as suppliers of drilling, pumping and fracturing equipment, and other stakeholders.

The website will be regularly updated and expanded to include features such as operations demonstrations that utilize video clips recorded from the company's oil field.

"CNE Petroleum's website will be an important tool for the company to not only support its worldwide awareness efforts, but also to communicate important information on its operations and major developments on a regular basis," commented Aaron (Hongjun) Wang, President of CNE Petroleum Holdings, Limited.

About China North East Petroleum Holdings, Limited

China North East Petroleum Holdings Ltd (OTC BB: CNEH) is engaged in the ownership, acquisition and management of mineral properties and the exploration for and development of oil drilling projects and the production of crude oil in Northern China. Currently, CNE Petroleum is producing through its Qian112 oilfield. CNE Petroleum 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 20 producing wells in Northern China and generates approximately 380 barrels of high quality crude oil per day. By the end of year 2007, CNE Petroleum plans to finish the project of drilling another 82 wells, as result the total oil well number will reach 102.

About Qian112 Oilfield:

Qian112 has middle and lower oil containing combination, industrial oil found in Fuyu oil layer and Gaotaizi oil layer. The main layer is Gaotaizi oil layer for the production wells.

Qian112 is located southeast of Qian'an. Its nose-shaped construction is inclined from north to southwest. The top elevation of Gaotaizi oil layer is -1350 to -1450 meters and faults have not developed in the area. The Gaotaizi oil layer is a target-exploiting layer in this area distributed in No.3 black segment stratum of Cretaceous system. The thickness of stratum is 350-410 meters, and oil reserve depth is 1600-2075 meters. Average oil-containing well segment is 120 meters and average effective thickness is 4.9 meters.

The proven geological reserve is 1,252,000 barrels (based on current 20 producing wells in compliance with the SEC Oil and Gas Proven Reserve Regulations -- Rule 4-10(a)(4) of Regulation S-X).

Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which China North East Petroleum Holdings Ltd. has little or no control.

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