BEIJING, Jan. 23, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ:RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the recent delivery of furnace equipment to PetroChina Changqing Oilfield Company ("PCOC"), China's largest oilfield company and a subsidiary of PetroChina ("CNPC", NYSE:PTR).
In December 2015, Recon qualified as Class A furnace supplier for PetroChina. The Company has provided its solutions for use in PCOC's various projects. This recent delivery is based on sales contract the Company entered in December 2016 with a total value of RMB2.7 million.
Recon has completed furnace sales contracts in total of RMB20.33 million since the Company commenced providing its products and services in the Changqing oilfield in March 2016.
Management Commentary
Mr. Shenping Yin, Chairman and CEO of Recon stated, "We are pleased to complete another delivery of our furnace equipment to Changqing oilfield, and are seeing a trend of more capital spending by larger oil and gas producers in China. We feel the additional procurement from PCOC is a strong verification that Recon's continued investment in R&D in recent years has positioned the Company to take advantage of this trend. We offer a total solution that lowers the ultimate cost and increases efficiency for our customers, which demonstrates real progress in applying our technologies to new industries and applications. We were pleased to see CNOOC Limited's (NYSE:CEO) recent announcement that it plans to increase its capital expenditures for the first time in three years, which reflects many of the trends we are seeing among China's upstream producers. We have worked to diversify our product offering to serve all facets of the oil production and development cycle and feel that we are poised to benefit in 2017 from this increased spending."
About Changqing Oilfield
The Changqing oil field ("Changqing"), located in the Erdos basin, is China's biggest crude and gas producer with total proven oil and gas reserves over 4500 million tons. Changqing is also the biggest gas and oil contributor to PetroChina, covering Shaanxi, Gansu, Ningxia, Inner Mongolia and Shanxi provinces, and plays the pivotal role of supplying oil and natural gas to cities including Beijing, Tianjin and Shijiazhuang. Changqing Oilfield has seen continuous growth of oil and gas production and rapid development since 2000.
About Recon Technology, Ltd. (NASDAQ: RCON)
Recon Technology, Ltd. is China's first listed non-state owned oil and gas field service company on NASDAQ. Recon supplies China's largest oil exploration companies, Sinopec (NYSE:SNP) 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.
Safe Harbor
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. 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.
Company Contact
Liu Jia
Recon Technology, Ltd.
+86 (10) 84945799
info@recon.cn
Investor Relations
The Equity Group Inc.
In China
Katherine Yao, Senior Associate
+86-10-6587-6435
kyao@equityny.com
In the U.S.
Adam Prior, Senior Vice President
+1 (212) 836-9606
aprior@equityny.com
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SOURCE Recon Technology, Ltd.
