Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Aardvark Adventures -- Ignore unavailable to you. Want to Upgrade?

To: ACAN who wrote (5101)	6/27/2008 8:31:59 PM
From: Saulamanca	Respond to of 7944

Thanks. Pivot is 4.69 and today with the volume was encouraging. From the last earnings report: China North East Petroleum Reports First Quarter 2008 Financial Results Thursday May 15, 8:30 am ET -- 1Q08 Revenue Increases 476% to $10.8 Million -- -- 1Q08 Net Income Increases 1,052% to $3.3 Million - HARBIN, China and NEW YORK, May 15 /Xinhua-PRNewswire-FirstCall/ -- China North East Petroleum Holdings Limited (the "Company") (OTC Bulletin Board: CNEH - News), an oil producing company in Northern China, today announced consolidated financial results for the first quarter ended March 31, 2008. Total sales for the first quarter were $10.8 million, a 476% increase compared to $1.9 million over the same period last year. The increase in revenues was a result of increased oil production and higher oil prices. Crude oil production for the first quarter increased 259% to 15,691 tons (115,800 barrels) from 4,367 tons (22,561 barrels) for the first quarter ended March 31, 2007. On a sequential basis, crude oil production increased 3,057 tons (22,561 barrels), or 24%, compared to the quarter ended December 31, 2007. Gross profit in the first quarter was $6.0 million, a 506% increase over $994 thousand in the same period last year. First quarter gross margin increased 270 basis points to 55.6% compared to 52.9% in the year ago period primarily due to the higher price of oil. Operating income increased significantly to $5.6 million, or 51.8% of sales, compared to $695 thousand, or 37.0% of sales in the same period of the prior year. Net income for the first quarter increased significantly to $3.3 million, or $0.17 per diluted share, versus $287 thousand, or $0.01 per diluted share, in the first quarter of 2007. Mr. Hongjun Wang, President of China North East Petroleum commented, "The first quarter of 2008 was a strong start to the fiscal year. Our record sales results continue to benefit from a combination of increased oil output as well as higher oil prices, both of which resulted in record profit for our business. We are making excellent progress expanding the size and scale of our business and our continuous cycle of drilling wells, maximizing production from our wells, and distributing our product to PetroChina Jilin (PTR) generated very strong cash flow and profits for our business in the first quarter. All of our revenues are currently derived from four oilfields within the Qian'an oilfield in the Jilin province, a proven oil-bearing area with significant oil deposits. Our firmly established twenty-year contract with PTR is a significant advantage that allows us to extract oil from Qian'an and exclusively sell our produced crude oil back to PTR. This partner is providing greater opportunities for better capitalized oil producers and our success thus far enhances our chances of attracting additional oil assets and leases in the Jilin province. We now have 157 wells in production as of the end of the first quarter and expect this number to grow on a quarterly basis as we progress through the year. Our increased cash position provides us with greater flexibility to not only drill new wells this year, but also allows us to further develop oil extraction technologies and selectively pursue acquisition opportunities. 2008 is shaping up to be a promising year for CNEH. The momentum in our business remains strong and we have a healthy balance of growth initiatives that can further expand our revenue and earnings performance in the current year and beyond," concluded Wang.