Reserve Reports

CNEH operates four proven oilfields with a total exploration area 11,663 acres. Referring to a geological reserve report conducted by PetroChina Jilin Oilfield Branch of Research Institute for Exploration and Development, total geological reserves of the oilfields that CNEH operates are 75 million barrels (PetroChina definition reverse result). Referring to December 2007 proven reserve report conducted by R.E. Davis Associates Inc., total proven reserves are 2.5 million barrels (SEC definition reserve result).
For more information on reserve reports please refer to attached reports.

China reports
R.E. Davis Report
R.A Lenser Report

Oil Reserve Disclaimer:

The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only “Proved” reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company is prohibited from disclosing other categories of reserves in its SEC filings. We use certain terms in this website such as “Total Geological Reserves,” “Total Exploration Area” or “Proved Oil Bearing Area” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.  China North East Petroleum urges investors to consider closely the disclosure in our SEC filings, available from us at 445 Park Avenue, New York, NY 10022. Investors can also obtain these filings from the SEC by calling 1-800-SEC-0330 or by obtaining them online at www.sec.gov. The “Total Geological Reserves”, “Total Exploration Area”, “Proved Oil Bearing Area” quantities reflected in this website were prepared by PetroChina Jilin Branch of Research Institute for Exploration and Development. These definitions and standards may result in estimates of proved reserves which are materially different from those disclosed in the Company’s filings with the SEC.