China Daqing Mh Petr (GREY:CHDP)

Through our subsidiaries, we are engaged in resale of oil drilling equipment and accessories and oilfield underground technology services (“Steel”), the business of extraction and sale of crude oil (“Extraction”) and subleasing of oil fields (“Subrental”).

 Our 100% owned subsidiary Daqing Yueyu Oilfield Underground Technology Service Co., Ltd (“Daqing Yueyu”) is engaged in resale of oil drilling equipment and accessories and oilfield underground technology services, and through its 95% owned subsidiary Jilin Yifeng Energy Resources Co., Ltd. (“Jilin Yifeng”) acquired on November 28, 2007, is engaged in the business of extraction and sale of crude oil and subleasing of oil fields. Since 2003, Jilin Yifeng has been engaged in the development of oil wells and extracting oil from the Miao14 oilfield blocks (“Miao14”).

Pursuant to a 20-year Exclusive Business Cooperation Agreement entered into between PetroChina and our 95% owned subsidiary Jilin Yifeng in February 2002, we have the right to explore, develop and produce oil at Miao14 Oilfield and take responsibility for well logging, drill-stem testing and core sampling. Pursuant to the agreement with PetroChina, during the first ten years of this agreement, the Company sells oil to PetroChina at 20% discount to market price. During the second ten years of this agreement, the Company sells oil to PetroChina at 40% discount to market price.

Reverse merger details