China North East Petroleum Holdings Ltd. (OTCBB: CNEH) today released its financial results for the fourth quarter and 12 months ended Dec. 31, 2007, posting increases across the board. The China-based oil producing company operates four oilfields in northern China.
For fiscal 2007, China North posted a 266 percent increase in sales; revenues for the year were $19.5 million, up from $5.3 million the year prior. The increase is attributed to higher oil production and oil prices. Fourth-quarter revenue rose 539 percent to $7.7 million, up from $1.2 million for the same period of 2006.
“We are extremely pleased with our progress for the fourth quarter and 2007 fiscal year. We finished the year operating 153 wells in four oilfields in the Jilin province,” Hongjun Wang, president of the company stated in the press release. “The rising price of oil throughout 2007 generated more cash for our business allowing us to increase the total number of wells in production from 90 at the beginning of 2007 to 153 at the end of the year. We also benefited from the implementation of water injection technologies that allowed us to maximize oil extraction at our existing wells.”
Net income for the 12 months of 2007 was reported at $5.1 million, up 439 percent from $952,000 the year before. Net income for the fourth quarter was $2.1 million, a 323 percent increase from $495,000 for the same period of 2006.
“We are very encouraged with our ability to further grow our revenue and profit in 2008. Our company enjoys a strong partnership with a major oil company, and the four oilfields in which we currently operate are proven oil bearing areas with strong reserves. CNEH has a compelling business model that is highly scalable, has minimal reserve risk, no sales costs, and generates strong cash flow. We see the opportunity to expand our operations through increased oil production, greater economies of scale and acquisition opportunities. We are building on our momentum over the last twelve months and believe that 2008 will be a monumental year for our business,” Wang stated.
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