BEIJING, June 11, 2021 /PRNewswire/ — Recon Expertise, Ltd (NASDAQ: RCON) (“Recon” or the “Firm”) at the moment introduced that its subsidiary, Beijing BHD Petroleum Expertise Restricted, signed two contracts with North China E&P Firm (the “North China Department”) of China Petroleum & Chemical Company (“Sinopec”). Pursuant to those two contracts, the Firm has supplied technical service with ultra-deep electrical submersible progressing cavity pump (“ESPCP”) to 1 gasoline effectively on the Dongsheng Area of the Second Fuel Manufacturing Plant (the “Plant No. 2”) of the North China Department and can present the identical service to a different gasoline effectively on the Plant No. 2. Whole quantity of those two contracts is RMB 3,277,000 (roughly $0.51 million).
“We’re extraordinarily excited to make extra breakthroughs within the ultra-deep submersible progressing cavity pump enterprise,” mentioned Mr. Guangqiang Chen, founder and CTO of Recon, “Since final 12 months once we signed a contract with the North China Department and accomplished our first trial, we now have now signed service contracts for RMB5.077 million (roughly $0.8 million) with the North China Department for 3 gasoline wells. We’re within the technique of speaking with the North China Department for ESPCP and associated companies for 15 extra wells and count on to finish companies by the tip of calendar 12 months 2021. Added collectively, we count on these companies will deliver us about $5 million of revenue.”
Mr. Chen continued, “Past our personal AI-based expertise, we additional built-in and upgraded downhole gas-liquid separation metering expertise with gear such because the ultra-deep screw pump from Nationwide Oilwell Varco Inc. (NYSE: NOV) and the downhole multi-parameter sensing units from Energy Max Petroleum Applied sciences Ltd, a Canada based mostly firm. We accomplished the development for one gasoline effectively at Plant No. 2 with our complete answer by April 16, 2021. In line with our commentary and testing for nearly two months, the drainage and gasoline boosting impact has been secure, and the manufacturing standing of the entire set of kit has been dependable. With out this answer, submersible pumps utilized by oil firms usually have a working life cycle of solely three months, after which period sand jams and gear put on are likely to end in interruption of gasoline effectively manufacturing. Because of this, oil and gasoline firms incur pricey inspection and restore charges. Our answer is predicted to ensure secure operation for a couple of 12 months, thus saving the excessive inspection and restore service prices, gear and equipment alternative prices, electrical energy prices and sewage remedy prices. Taken collectively, our answer can assist our purchasers enhance their margin by as much as 40%. We held an on-site technical trade and promotion assembly with the North China Department on Might 20, 2021 and we had been advised that the North China Department will promote our ultra-deep screw pump identical effectively restoration and injection expertise to all the brand new gasoline wells to be invested by the North China Department. Sooner or later, we plan to proceed upgrading our expertise in the identical effectively restoration and injection enterprise to supply extra value-added companies to our purchasers, and produce extra long run returns to the Firm.”
About Recon Expertise, Ltd
Recon Expertise, Ltd (NASDAQ: Recon) is China’s first listed non-state owned oil and gasoline area service firm on NASDAQ. Recon provides China’s largest oil exploration firms, Sinopec (NYSE: SNP) and The China Nationwide Petroleum Company (“CNPC”), with superior automated applied sciences, environment friendly gathering and transportation gear and reservoir stimulation measure for rising petroleum extraction ranges, lowering impurities and decreasing manufacturing prices. By means of the years, Recon has taken main positions on a number of segmented markets of the oil and gasoline filed service business. Recon additionally has developed secure long-term cooperation relationship with its main purchasers. For extra data please go to: www.recon.cn.
Ahead Trying Statements
Ahead-Trying Statements on this press launch, which aren’t historic information, are forward-looking statements inside the which means of the Non-public Securities Litigation Reform Act of 1995. Our precise outcomes, efficiency or achievements might differ materially from these expressed or implied by these forward-looking statements. In some instances, you’ll be able to establish forward-looking statements by means of phrases reminiscent of “might,” “might,” “count on,” “intend,” “plan,” “search,” “anticipate,” “consider,” “estimate,” “predict,” “potential,” “proceed,” “probably,” “will,” “would” and variations of those phrases and related expressions, or the unfavorable of those phrases or related expressions. Such forward-looking statements are essentially based mostly upon estimates and assumptions that, whereas thought-about affordable by us and our administration, are inherently unsure. Components that will trigger precise outcomes to vary materially from present expectations embrace, amongst others, whether or not we are going to signal any further contracts with the North China Department, the ultimate income from offering companies to the North China Department, precise outcomes of our options within the area, ranges of spending in our business in addition to shopper confidence usually; adjustments within the aggressive atmosphere in our business and the markets the place we function; our capability to entry the capital markets; and different dangers mentioned within the Firm’s filings with the U.S. Securities and Trade Fee, together with our Annual Report on Type 20-F, which filings can be found from the SEC. We warning you to not place undue reliance on any forward-looking statements, that are made as of the date of this press launch. We undertake no obligation to replace publicly any of those forward-looking statements to mirror precise outcomes, new data or future occasions, adjustments in assumptions or adjustments in different elements affecting forward-looking statements, besides to the extent required by relevant legal guidelines. If we replace a number of forward-looking statements, no inference needs to be drawn that we are going to make further updates with respect to these or different forward-looking statements.
For extra data, please contact:
Ms. Liu Jia
Chief Monetary Officer
Recon Expertise, Ltd
Cellphone: +86 (10) 8494-5188
E mail: [email protected]
SOURCE Recon Expertise, Ltd.