CNEH’s business model is simple, relatively low risk and yet efficient and effective.



CNEH believes that the strengths of its business model are:

STRONG CASH FLOW

· Cash flow from operations consistently >60% of revenues

HIGHLY SCALABLE

· Takes approximately 20 days to drill one well once location is identified
· Potential for new oilfield leases to highly experienced and well capitalized  players
· Implementation of mature technologies to increase production

LOW RESERVE RISKS

· Extensive studies have been conducted on oilfields to verify quantity and locations of oil
· 100% of wells drilled have found oil (3-D technology)

NO SALES COST

· CNEH has contractually guaranteed to sell all oil extracted to PetroChina Jilin Branch

             ·CNEH receives payment every month from PetroChina Jilin Branch