Recon Technology's BHD Division Receives New Authorization to Provide Fracturing Equipment and Services for Sinopec
BEIJING, CHINA--(Marketwired - Mar 11, 2014) - Recon Technology, Ltd. (NASDAQ: RCON), a leading oilfield services provider that operates primarily in the People's Republic of China, today announced that its BHD Petroleum Technology Ltd. division has received a new oil field access Certificate from China's state-owned oil and gas exploration company, Sinopec, authorizing BHD to provide horizontal fracturing equipment and services at Sinopec's Northeast oilfield branch in China's Jilin Province.
BHD has thus far provided fracturing equipment utilized at one of Sinopec Northeast oilfield's wells. That well produced revenue of approximately RMB 1.2 million ($196,721) for BHD. According to Sinopec's production plan, an additional 21 wells will require fracturing services in 2014, with a budget of approximately RMB 2 million ($326, 880) per well.
In its work for Sinopec, BHD will continue to utilize the fracturing tools of its long-term technology partner, Baker Hughes. The detailed operating plan and onsite service for Sinopec will be designed and implemented by BHD's professional service team.
"We are very pleased to receive this Certificate from Sinopec," said Mr. Chen Guangqiang, CTO of Recon Technology. "Not only does this provide us with a key source of incremental revenue, it also corroborates, at the highest industry level, the quality of our oilfield fracturing technology and those fracturing technologies we have developed with Baker Hughes. We will continue to work with Baker Hughes to help expand the use of their products in China's oilfield services market.
"We look forward to continuing our important work at Sinopec's oilfields this year, and hopefully, to announcing additional technology contracts in the near future."
About Recon
Recon Technology, Ltd. is China's first listed non-state owned oil and gas field service company on Nasdaq (RCON). Recon supplies China's largest oil exploration companies, Sinopec 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.
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