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BEIJING, Dec. 14, 2016 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the recent completion of contracts entered into in November 2016 with PetroChina Changqing Oilfield Company ("PCOC"), China's largest oil producer and subsidiary of PetroChina ("CNPC"), (NYSE: PTR). The total value of these completed contracts was more than RMB 5 million and will be recorded as revenue in fiscal 2017. Recon was chosen in a highly competitive bidding process based on a combination of its expertise, price, and past successes. This is also a significant headway since the Company was qualified as Class A furnace supplier for PetroChina in December 2015 (for further information, please refer to December 14, 2015, "Recon Technology, Ltd. Subsidiary Qualifies as Class A Furnace Supplier for PetroChina and Inks RMB 3.22 Million (US$0.5 million) Contract").
The Company began working in the Changqing oilfield in March 2016, and to date the Company has completed furnace sale contracts totaling RMB15.88 million.
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.
The Company provided PCOC with energy-efficient heating furnaces for crude oil transportation. Recon has leveraged the Company's continued investment in R&D to produce considerable cost-savings for oil producers by further offering an advanced, reliable, automated, safe and highly heat-efficient solution. Recon currently owns or has applied for 38 patents registered with the State Intellectual Property Office, which cover its automated products and heating related equipment for the petroleum industry.
Mr. Shenping Yin, Chairman and CEO of Recon stated, "These furnace contracts have reinvigorated our business and positioned us well with a significant new customer. As oil prices reach current stable level, demands of our oilfield clients will also continuously increase. With our technical advantages and reliable reputation in the oil industry, Recon is taking advantage of the promising Changqing oilfield. This immense market represents an opportunity for growth at Recon due to oil producers seeking to gain efficiencies downstream. We believe that our customers can benefit from the investments made in researching methods to reduce costs in all facets of the oil processing cycle, which could present strong opportunities for Recon to provide new services and products in addition to heating furnaces. We also believe that Recon has earned our clients' trust to present more complex and integrated solutions that allow them to achieve their goals of lean production management. We are pleased to have completed this recent set of contracts and look forward to moving into calendar 2017."
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.
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.
Recon Technology, Ltd.
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Adam Prior, Senior Vice President
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SOURCE Recon Technology, Ltd.