Recon Technology Announces Contract with Sinopec for Furnaces
BEIJING, Feb. 29, 2012 /PRNewswire-Asia-FirstCall/ -- Recon Technology, Ltd (Nasdaq: RCON), a Chinese non-state-owned oil and gas automation services provider (the "Company"), announced today that one of its variable interest entities, Beijing BHD Petroleum Technology Co. Ltd. ("BHD"), received a notice from the Northwest Exploration Bureau of China Petroleum and Chemical Corporation ("Sinopec") that it had won a contract to provide four 4,500 kW furnaces and four 400 kW fluid-jacket furnaces to Sinopec's Northwest Oilfield. The contract is valued at approximately RMB 6 million ($954,000).
BHD has been in the oilfield furnace business for more than ten years and is experienced in designing the key parts of this specialized equipment. To date, it has acquired 19 patents in relation to the furnace.
"These furnaces are products based on BHD's own research and development," Mr. Guangqiang Chen, Chief Technology Officer of the Company, said, "The contract will help establish our presence in the market of large oilfield companies such as Sinopec, which regularly place orders larger than our other customers. We value this opportunity very much, not only in balancing our relatively low volume of business during the first half of this fiscal year, but also in reducing the seasonal fluctuation of our business in the long term due to the larger size of the orders."
About Recon Technology, Ltd
Recon Technology, Ltd has been providing leading Chinese oil and gas companies with automation services that increase efficiency and profitability in exploring, extracting, producing, processing, refining and transporting petroleum products for over 10 years. Rcon's proprietary computerized process control system manages oil production in real-time to increase extraction levels, reduce impurities in extracted petroleum and lower production costs. In addition, as one of only two acoustic system providers in the world, Recon's acoustic pipeline monitoring system is widely used to prevent gas leakage in the transport pipeline. Recon's technology is based on three software copyrights, eight product patents and four pending patents. Recon Technology is the first Chinese non-state-owned oil and gas service company to go public in the U.S. More information may be found at http://www.recon.cn/.
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