China North East Petroleum Announces Stock Buyback Program of Up to $5M
China North East Petroleum Holdings Limited (NYSE: NEP) today announced that its Board of Directors has approved a share repurchase program for up to $5 million of its common stock.
Mr. Jingfu Li, CEO of China North East Petroleum commented, "Based on current market conditions, our strong balance sheet and cash generation capacity, we believe that the implementation of a stock buyback program is an attractive use of available funds at this time and is in the best interests of our shareholders. We believe the amount of our buyback is appropriate at this time as we continue to focus on the growth of our operations, particularly as we develop our oil production activities within the Durimu oilfield. We remain highly confident in our business and remain comfortable with our near and long-term growth initiatives."
Under the terms of the approved program, the Company may repurchase up to US$5 million of its issued and outstanding common shares from time to time over the next 12 months. The repurchases will be made on the open market at prevailing market prices or in block trades and subject to restrictions relating to volume, price and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of the shares, the nature of other investment opportunities presented to the Company, the Company's cash flows and expected cash flows, general economic conditions and other factors. The Company plans to fund repurchases made under this program from its available cash balance.
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