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BEIJING, Oct. 24, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that it will provide its proprietary chemical compound agents and microbiological treatment agents (the "Products") and relevant services for oily sewage treatments to Qinghai Oilfield Company ("Qinghai Oilfield"), a PetroChina Co., Ltd. ("PetroChina") subsidiary (the "Project"). Recon's revenue of the Project is expected to be RMB 13.11 million (approximately USD $2 million) over the course of one year, subject to the quantity of the Products actually used by Qinghai Oilfield. Recon expects to begin recording revenue under the Project in the current quarter. The Project represents a significant increase in size and scope over the Company's previous wastewater treatment agreements.
All goods to be delivered in the Project will be developed and rendered by Recon. Recon is applying patents for its own bio-stimulants, a kind of microbiological treatment agents needed in the Project and has been granted several patents for invention of oily wastewater treatment devices (please refer to the following link for more details: Recon Technology Receives Patent for Oilfield Wastewater Treatment Device).
Management Commentary: Continued Acceleration in Signing of Wastewater Agreements
"This is a major progression in our partnership with Qinghai Oilfield, and an indication of the upside potential of Recon in the oilfield environmental protection market," stated Mr. Yin Shenping, CEO of Recon, "Our oilfield waste water treatment business has continued to expand rapidly, as agreements have continued to grow in terms of size and number. In fiscal 2017, we grew our revenue in this business by over 371%."
Mr. Yin continued, "The market potential in wastewater represents a significant opportunity for Recon in the coming quarters, as many of the investments made by our Company during the downturn in oil prices have begun to materialize into increasing orders in the past six months. The principal driver of growth in this market is increased regulatory requirements amidst the need for greater environmental protection, which is creating a need for our large-oilfield clients to utilize our products and services to improve their waste services. We have leveraged experience, data analysis, and research to develop solutions for these large-scale oilfield companies in China, many of which we have had relationships with for over a decade. The increasing amounts of agreements represents more than simply what the amounts themselves represent, as the overall perception of Recon is changing from merely an oilfield service company to a hi-tech company in our marketplace ."
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: www.recon.cn.
Liu Jia, CFO
Recon Technology, Ltd.
+86 (10) 8494-5799
SOURCE Recon Technology, Ltd.