Recon Announces the Successful Completion of Zhongyuan Oilfield Fracturing Service Project
BEIJING, Oct. 23, 2013 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), an oilfield service company provider (the "Company") operating primarily in the People's Republic of China, announced today that its fracturing projects in China Petroleum and Chemical Corporation's ("Sinopec") Zhongyuan oilfield have been accepted by the client, marking completion of the project.
The Company initially introduced the Baker Hughes' Frac-PointTM -Open Hole Fracture System to Zhongyuan Oilfield at the end of 2011. During the Company's fiscal year ended June 30, 2013, Recon signed several fracturing service contracts with an aggregate contract value of RMB 30 million (or US$4.8 million) with Sinopec Zhongyuan oilfield. According to Zhongyuan's final assessment report, Recon applied horizontal well fracturing in 12 wells (4 oil wells and 8 gas wells), and achieved a "100% success ratio" with no accidents or injuries. Compared to normal fracturing services, horizontal well fracturing technology could raise the daily oil yield by 12 tons, and daily gas yield by 15,000 cubic meters. These results showed increased yield and economic benefit and suggest that horizontal well fracturing may be applied in Chinese common oil-water wells and shale-gas wells.
"Our successful introduction and use of horizontal well fracturing lay a solid foundation for Recon's continuous expansion into China's domestic oil and gas service industry," said Mr. Chen Guangqiang, CTO of Recon Technology. "Our oil and gas service industry is driven primarily by both capital and technology. In the past few years, Recon has been devoting significant resources to R&D and field-testing with Chinese oilfield companies. To date, we have gained valuable on-site experience and technical knowledge when it comes to customizing proven global technology to fit the specification of our Chinese oil and gas clients. Looking forward, we are very confident that, by delivering advanced technology and customized solutions which enable Chinese oil and gas companies to improve their production, efficiency and safety, we will develop more long term and mutually beneficial business relations in Chinese energy industry."
About Recon Technology, Ltd.
Recon Technology, Ltd provides leading Chinese oil and gas companies with automation services designed to increase efficiency and profitability in relation to the exploration, extraction, production, refining and transportation of field based petroleum products for 10 years. Recon Technology is the first Chinese non-state-owned oil and gas service company to go public in the U.S. For additional information, please visit us at www.recon.cn.
SOURCE Recon Technology, Ltd.