BEIJING, Nov. 5, 2013 /PRNewswire-FirstCall/ -- Recon Technology, Ltd. (NASDAQ: RCON), an oilfield service company provider ("Recon" or the "Company") operating primarily in the People's Republic of China, announced today it recently received several sales orders for specialized oilfield furnaces from China National Petroleum Company's ("CNPC") Jiling Oilfield Company and Huabei Oilfield Company. The total value of these contracts will be approximately RMB11 million or USD1.9 million.
According to sales contracts, the Company will provide 9 vacuum heating furnaces to its newly developed customer, CNPC's Jiling Oilfield Company, and 6 phase-change heating furnaces to its long-term customer, CNPC's Huabei Oilfield Company. The Company will be in charge of the project, from design through manufacture of the furnaces, and expects to complete the orders before the end of calendar 2013.
Furnaces are mainly used to facilitate petroleum transportation by raising oil temperature to decrease viscosity or flow resistance and maintain liquidity before the oil is transported from the oilfield. As China's oilfields have entered the water-flooding stage of development, crude oil temperatures drop, making furnaces even more important to efficient transportation. Key technologies and development of oilfield furnaces are of great significance to oilfield production safety, energy saving as well as production efficiency.
"Recon has sold more than 400 furnaces of various types since year 2009. We have made many technology breakthroughs, obtained 11 oilfield furnace-related patents and been a leader of this segmented industry," said Mr. Chen Guangqiang, CTO of the Company. "We are very excited about establishing this new business relationship with Jiling Oilfield. We will continue to focus on expanding our list of oilfield company clients in China and maintaining our leadership position. As more oil wells are developed, we believe our furnace business will continue to grow."
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.
Forward Looking Statements
No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in Recon's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. Recon undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Recon Technology, Ltd.