To whom in may concern,
I have been a China Northeast Petroleum shareholder for 3.5years now and am very happy to see how the company has grown. The report by Bigfish yesterday was clearly an attempt to profit from the fact that many other Chinese companies have lied to investors. I argued against many of Bigfish's arguments here: http://themarketbrothers.blogspot.com/2011/04/is-bigfish-right-or-wrong-about-nep-is.html
Still, Bigfish did bring up a couple good points about errors in some of your SEC filings, including the recent 10-K report. I do hope that you will explain these discrepancies so that investors can feel more confident.
1. If you add up the quarterly drilling depth performed by Tiancheng, the total comes to about 306,000 meters, but in the 10-K you list the total depth drilled as 374,000 meters.
2. As Bigfish pointed out, the amended Q3 2009 report shows what I believe to be an incorrect combined revenue number when including Tiancheng in your operations on page 18. You seem to have corrected the revenue amount on your 2009 10-k. Still, it would be nice to have an explanation as to why the error was not caught by you or your auditor.
Thanks for your time and I look forward to hearing about the new acquisition when it goes through.