BEIJING, Dec. 14, 2016 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading
independent oilfield services provider operating primarily in
China, today announced the recent
completion of contracts entered into in November 2016 with PetroChina Changqing Oilfield
Company ("PCOC"), China's largest
oil producer and subsidiary of PetroChina ("CNPC"), (NYSE: PTR). The total value of these
completed contracts was more than RMB 5 million and will be recorded as
revenue in fiscal 2017. Recon was chosen in a highly competitive
bidding process based on a combination of its expertise, price, and
past successes. This is also a significant headway since the
Company was qualified as Class A furnace supplier for PetroChina in
December 2015 (for further
information, please refer to December 14,
2015, "Recon Technology, Ltd. Subsidiary Qualifies as Class
A Furnace Supplier for PetroChina and Inks RMB 3.22 Million (US$0.5
million) Contract").
The Company began working in the Changqing oilfield in
March 2016, and to date the Company
has completed furnace sale contracts totaling RMB15.88 million.
Changqing Oilfield
The Changqing oil field ("Changqing"), located in the Erdos
basin, is China's biggest crude
and gas producer with total proven oil and gas reserves
over 4500 million tons.
Changqing is also the biggest gas and oil contributor to
PetroChina, covering Shaanxi,
Gansu, Ningxia, Inner Mongolia and
Shanxi provinces, and plays the
pivotal role of supplying oil and natural gas to cities including
Beijing, Tianjin and Shijiazhuang. Changqing Oilfield has seen
continuous growth of oil and gas production and rapid development
since 2000.
Contract Details
The Company provided PCOC with energy-efficient heating furnaces
for crude oil transportation. Recon has leveraged the Company's
continued investment in R&D to produce considerable
cost-savings for oil producers by further offering an advanced,
reliable, automated, safe and highly heat-efficient solution. Recon
currently owns or has applied for 38 patents registered with the
State Intellectual Property Office, which cover its automated
products and heating related equipment for the petroleum
industry.
Management Commentary
Mr. Shenping Yin, Chairman and
CEO of Recon stated, "These furnace contracts have reinvigorated
our business and positioned us well with a significant new
customer. As oil prices reach current stable level, demands of our
oilfield clients will also continuously increase. With our
technical advantages and reliable reputation in the oil industry,
Recon is taking advantage of the promising Changqing oilfield. This
immense market represents an opportunity for growth at Recon due to
oil producers seeking to gain efficiencies downstream. We believe
that our customers can benefit from the investments made in
researching methods to reduce costs in all facets of the oil
processing cycle, which could present strong opportunities for
Recon to provide new services and products in addition to heating
furnaces. We also believe that Recon has earned our clients' trust
to present more complex and integrated solutions that allow them to
achieve their goals of lean production management. We are pleased
to have completed this recent set of contracts and look forward to
moving into calendar 2017."
About Recon Technology, Ltd. (NASDAQ: RCON)
Recon Technology, Ltd. is China's first listed non-state owned oil and
gas field service company on NASDAQ. Recon supplies China's largest oil exploration companies,
Sinopec (NYSE: SNP) and CNPC, with advanced automated technologies,
efficient gathering and transportation equipment and reservoir
stimulation measure for increasing petroleum extraction levels,
reducing impurities and lowering production costs. Through the
years, RCON has taken leading positions on several segmented
markets of the oil and gas filed service industry. RCON also has
developed stable long-term cooperation relationship with its major
clients, and its products and service are also well accepted by
clients. For additional information please visit us at
www.recon.cn.
Safe Harbor
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulation, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the company, are expressly qualified by the
cautionary statements and any other cautionary statements which may
accompany the forward-looking statements. In addition, the company
disclaims any obligation to update any forward-looking statements
to reflect events or circumstances after the date hereof.
Company Contact
Liu Jia
Recon Technology, Ltd.
+86 (10) 84945799
info@recon.cn
Investor Relations
The Equity Group Inc.
In China
Katherine Yao, Senior Associate
+86-10-6587-6435
kyao@equityny.com
In U.S.
Adam Prior, Senior Vice
President
+1 (212) 836-9606
aprior@equityny.com
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SOURCE Recon Technology, Ltd.
