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To: ~digs who wrote (5474)	8/13/2008 4:56:30 PM
From: Saulamanca	Read Replies (1) \| Respond to of 7944

CNEH earnings should be this week.

To: ~digs who wrote (5474)	8/13/2008 4:58:18 PM
From: Saulamanca	Respond to of 7944

BZP

To: ~digs who wrote (5474)	8/14/2008 6:31:46 PM
From: Saulamanca	Read Replies (1) \| Respond to of 7944

China North East Petroleum Reports Second Quarter 2008 Financial Results Thursday August 14, 4:19 pm ET - 2Q08 Revenue Increases 246% to $14.2 Million - 2Q08 Gross Profit Increases 263% to $7.7 Million - 2Q08 Net Income Increases 201% to $3.8 Million HARBIN, China and NEW YORK, Aug. 14 /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 second quarter ended June 30, 2008. Second Quarter 2008 Results Total sales for the second quarter were $14.2 million, a 246% increase compared to $4.1 million over the same period last year. This increase was due to an increase in crude oil production and crude oil price. Crude oil production for the second quarter increased 119% to 135,193 barrels (18,319 tons) from 61,732 barrels (8,365 tons) for the quarter ended June 30, 2007. The increase in production was mainly because of (i) refracturing and other technical improvements made on the existing wells; (ii) the implementation of water injection technology which improved the efficiency of our existing wells by reducing the gradual decrease in production rates and (iii) 27 new wells drilled during the second quarter of 2008. The cost of sales in the second quarter increased by 227% to $6.5 million from $2.0 million for the three months ended June 30, 2007. The increase in cost of sales resulted primarily from the increase in production, depreciation of oil and gas properties, and an increase in the absolute amount of oil surcharges as a result of increased production. Gross profit in the second quarter increased 263% to $7.7 million from $2.1 million in the same period last year. Second quarter gross margin increased to 54.4% compared to 51.8% in the year ago period. Operating expenses increased by 213% to $1.1 million from $349 thousand in the second quarter 2007. This is primarily a result of increases in (i) amortization of deferred financing costs; (ii) amortization of discount of debenture and (iii) consulting fees. Operating income increased to $6.6 million compared to $1.8 million in the same period of the prior year. Operating margin expanded 340 basis points to 46.6% of sales in the second quarter of 2008 from 43.2% of sales in the second quarter of 2007. Net income for the second quarter increased 201% to $3.8 million, or $0.19 per diluted share, versus $1.3 million, or $0.04 per diluted share, in the second quarter of 2007... ...First Half 2008 Results Sales for the six months ended June 30, 2008 increased 318% to $25.0 million compared to $6.0 million for the six month prior year period. Gross profit for the first six months was $13.7 million, a 342% increase over $3.1 million in the same period last year. Gross margin increased 280 basis points to 54.9% compared to 52.1% in the year ago period. Operating expenses in the first half 2008 were $1.7 million, or 6.9% of sales, compared to $648 thousand, or 10.8% of sales, in the prior year period. Net income increased by 358% to $7.1 million, or $0.36 per diluted share, from $1.5 million, or $0.05 per diluted share, for the six months ended June 30, 2007.