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Recon Announces RMB9 Million Contract for Disposal of Oil Sludge from Yumen Oilfield

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BEIJING, Sept. 7, 2021 /PRNewswire/ -- Recon Technology Limited (NASDAQ: RCON) ("Recon" or the "Company") today announced that its subsidiary, Gansu BHD Environmental Technology Co., Ltd ("Gansu BHD"), and Yumen Oilfield Engineering Construction Co., a wholly-owned subsidiary of China National Petroleum Corporation ("CNPC" or "PetroChina"), signed a service contract for the hazardous waste disposal technology service project of various oil production plants of Yumen Oilfield. The contract amount is approximately RMB9 million (approximately USD1.4 million) and the contract period is one year.

According to the contract, Gansu BHD is required to transfer and safely dispose of about 6,000 tons of hazardous waste such as oily sludge temporarily stored in various oil production plants in Yumen Oilfield.

Gansu BHD has a 50-year land use right for 26,235.59 square meters in Yumen City and built a production line with an annual treatment capacity of 60,000 tons of oilfield oily waste comprehensive utilization and harmless comprehensive disposal (the "Oil Sludge Treatment Project") with a cumulative investment of approximately RMB40 million. Gansu BHD has also achieved a necessary and scarce hazardous waste operating permit issued by the Jiuquan Environmental Protection Bureau in Gansu province. The Company currently owns a 70% interest in Gansu BHD.

Management Comments

Mr. Chen Guangqiang, Founder and CTO of Recon, said, "We are delighted to have won the contract of the sludge disposal for several oil production plants in the Yumen Oilfield. Since we started production in 2019, we have been awarded six contracts for the disposal of sludge from oil production plants under the Yumen Oilfield, with the service tonnage of individual contracts increasing from tens of tons to hundreds of tons to thousands of tons per contract. Gansu BHD's sludge treatment project line is currently the only such treatment facility in Gansu Province. Gansu BHD has taken the lead in developing the domestic oil sludge treatment technology and has been continuously improving its own production and treatment process. This is the basis for us to continue to gain recognition from oilfield companies and obtain new service contracts. Gansu BHD has signed an aggregate of about RMB18 million (approximately USD2.8 million) in service contracts."

Mr. Chen added, "Since 2018, Recon has been continuously investing in its oilfield environmental protection business as we believe this is a key development direction. Our focus is mainly on oily wastewater treatment and oily sludge treatment for oilfields. Oilfield sewage and sludge treatment technically challenging, requiring formulation of pretreatment chemicals, and synergistic application of physical and chemical methods to treat oil sludge effectively. Our disposal experience in oilfield sewage and sludge treatment, bolstered with patents in this area, has allowed us to increase the proportion of oilfield sewage and sludge business in the overall revenue composition. We are continuing to bid for projects and approach new potential customers, so we expect that the company will continue to obtain contracts for related services in the coming year."

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is China's first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("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: http://www.recon.cn/.

Forward-Looking Statements

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, fulfillment of the Yumen Oilfield contract; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including our Annual Report on Form 20-F, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

For more information, please contact:

Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: info@recon.cn

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SOURCE Recon Technology, Ltd.