China North East Petroleum to Acquire Oilfield in Inner Mongolia for $43.4M

China North East Petroleum Holdings Ltd. NEP today announced it entered into a binding agreement to acquire Sunite Right Banner Shengyuan Oil and Gas Technology Development Co., Ltd., an operator with exclusive oilfield exploration and drilling rights to the Durimu oilfield in Inner Mongolia. China North East Petroleum is expected to pay a total consideration of $43.4 million consisting of RMB 70 million (approximately USD$10.6 million) in cash upon closing of the acquisition and 5.8 million shares of NEP restricted common stock in exchange for 100% ownership of Shengyuan.