BEIJING, Dec. 1, 2014 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON), a leading independent oilfield services provider operating primarily in China, reported today it has developed and expects to shortly commercialize in China its own fracking system. It is an improved utility for oil and gas fracking activities which stimulates oil and gas production from underground rock formations.
Recon believes its new Frac BHD system is a potential substitute for the expensive foreign systems widely used in China at present. It is comprised of a sleeve, float shoes, setting balls, hanger, hydraulic anchor, tie-back seal assembly and an integrated open hole packer which is used to isolate sections of horizontal wells when collecting oil and gas. This new system provides a solution for multi-stage stimulation in the open-hole horizontal well fracturing process which maximizes reservoir productivity and saves well completion time.
"Our new fracking system," stated Mr. Yin Shenping, CEO of Recon, "reflects our years of onsite experience, and incorporates innovations such as check valves to facilitate tool string installation and avoid midway setting accidents. We believe it will match the performance and reliability of the imported systems currently in use and can be competitively priced."
Scheduled for market entrance in March, 2015, Mr. Yin said he believed the product would generate $1.5 to $2 million of revenue in calendar 2015.
"Fracking in China has been held back largely due to its extremely high cost," Mr. Yin added, "and our new open hole packer is another step toward addressing this problem."
He continued, "It is also another example of how Recon is enhancing production and reducing exploration costs across a wide spectrum of oil and gas production activities. With our proven technical and engineering skills we believe Recon will maintain leadership in the industry, as well as participate in the growth we see ahead in fracking."
Recon Technology, Ltd. is China's first independent oil and gas field service company listed on NASDAQ (RCON). Closely working with leading global partners, Recon has achieved rapid growth supplying China's largest oil and gas exploration companies, including Sinopec and China National Petroleum Corporation, with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures. The solutions Recon provides are aimed at increasing gas and petroleum extraction levels, reducing impurities, improving safety and lowering production costs. For additional information, please visit www.recon.cn.
Statements made in this release with respect to Recon's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Recon. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. These statements are based on management's assumptions, judgments and beliefs in light of the information currently available to it. Recon cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, including but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, timing of revenue recognition, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. Therefore investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.
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.
DGI Investor Relations
Chief Financial Officer
Recon Technology, Ltd.
+86 (10) 84945799
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SOURCE Recon Technology, Ltd.