Longwei Petroleum increases deposit for the acquisition of Huajie Petroleum Assets (LPH)

Longwei has increased its deposit to $85.1 mln through cash on hand for the purchase of the assets of Huajie Petroleum. The company intends to acquire the assets of Huajie Petroleum for a total of $108.3 mln. Longwei and Huajie Petroleum had previously been in discussions to close on the asset purchase by June 30, 2011, at which time Longwei had agreed to pay at least 50% of the total purchase price through cash on hand as a deposit and the Seller would accept a promissory note for the balance of the purchase price. The Parties could not reach a final agreement relating to the terms of the promissory note and have agreed that the Company shall pay the balance of the purchase price, $23.2 mln, by December 31, 2011, at which time the assets will be transferred. As of June 30, 2011, Longwei had paid a $85.1 mln deposit, or 78.6% of the total purchase price, using cash on hand.