China North East Petroleum Holdings Ltd. reported a large increase in sales, and a strong profit in the second quarter of 2010. The improved results were due to a large increase in realized oil prices during the quarter.

China North East Petroleum Holdings Ltd. had sales of $27.2 million in the second quarter of 2010, compared to $11.4 million in the same quarter of 2009. However, China North East Petroleum Holdings Ltd. reported an eleven percent decline in oil production from the company’s wells during the quarter. The company reported production of 198,776 barrels of oil, compared to production of 223,059 barrels of oil in the same quarter of 2009.

China North East Petroleum Holdings Ltd. sold its oil production during the second quarter of 2010 at an average price of $77 per barrel, compared to $50 a barrel during the corresponding quarter of 2009.

China North East Petroleum Holdings Ltd. reported net income of $25.0 million, or $0.81 per diluted share, in the second quarter of 2010. The company said that the quarter’s results contained a non-cash gain of $15.1 million related to a recalculation of the fair value of a warrant.

China North East Petroleum Holdings Ltd. is an oil and gas exploration and production company with interests in four oil fields in Northern China. The company has 289 producing oil wells on its properties.

For more information on the company, go to www.cnepetroleum.com

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