CNEP plans stock offering to expand production

China North East Petroleum (CNEP) plans to raise more than US$18 million through an offering of its common stock, AP reported. The oil producer will offer 4 million shares at US$4.60 per share, a discount of 8.5% from its closing price on Tuesday, and plans to use the proceeds to expand production. CNEP is also issuing warrants to investors to buy 800,000 shares of common stock, with an exercise price of US$6 per share. Shares of China North East Petroleum Holdings fell US$0.37, or 7.4% to US$4.66 in afternoon trading in New York. Over the past year, the stock has traded between US$1.25 and US$6.50.