Dutton Associates Announces Investment Opinion on China North East Petroleum: Strong Speculative Buy Rating in Initiating Coverage

ROSEVILLE, Calif.--(BUSINESS WIRE)--Dutton Associates initiates coverage of China North East Petroleum (OTCBB: CNEH.OB) with a Strong Speculative Buy rating and a price target of $4.35. The 23-page report by Dutton senior analyst Stanley Ng is available at www.duttonassociates.com as well as from First Call, Bloomberg Professional, Zacks, Reuters, Knobias, and other leading financial portals.

China North East Petroleum is an attractive investment to participate in the sustaining economic growth and energy demand in China, with its dependency on oil imports becoming a national energy security concern and challenge to the national economy. China’s upstream market has also become increasingly active in recent years due to government policies that support new private entrants to the upstream sector and encourage private investment with focus on smaller oil and gas field exploration and development. These provide ample opportunities for the Company to grow its business by leveraging on its management experience and ability to access the foreign capital market to deploy more oil wells on current oil fields and to acquire other oil extraction contractors, as well as applying for new oil field leases. Its business model is simple and straightforward, with a 20-year exclusive Cooperative Oil Lease with PetroChina. Key strengths of the business model is that all production of crude oil will be sold to PetroChina. The Company only drills oil wells with proven reserves studied and verified by PetroChina. FD EPS are forecasted to increase from $0.21 in 2007 to $0.74 in 2008, and rise to $0.87 in 2009. Should average crude oil prices in 2009 drop to $70 per barrel, the Company’s diluted EPS will drop to $0.69 in 2009.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts, primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $18,500 from the Company for 2 quarterly Research Reports with coverage commencing on 10/07/2008. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Dutton Associates
John M. Dutton, 916-960-0623