Gulf Resources Announced Finding of Natural Gas Resources Under Its Bromine Well in Sichuan Area
January 30 2015 - 8:00AM
Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the
"Company" or "GURE"), a leading manufacturer of bromine, crude salt
and specialty chemical products in China, today announced that the
company has found natural gas resources under its bromine well in
Sichuan area.
In 2014, the Chinese National Petroleum Corporation (CNCPC),
(listed symbol PTR) discovered 440.4 billion cubic meters of proven
geological natural gas reserves of which 308.2 billion cubic meters
is "technically recoverable" in Moxi block of An'yue field Sichuan
Province. This area is very near to the region where Gulf Resources
is exploring for bromine.
GURE's technical staff believed there might be natural gas under
the company's bromine well due to the similar geological structure
with Moxi block. In September 2014, GURE's team started deeper
drilling exploration under its existing well and did exploration
analysis on the resources from different levels. Recently, GURE's
team discovered natural gas resources under its existing well.
Because the discovery was under its existing well, the drilling
costs have not been excessive.
Gulf Resources' CEO, Xiaobin Liu stated, "We are very excited
and pleasantly surprised to have found natural gas under our
existing well. We will hire a third party to conduct a survey of
the geological structure and complexity analysis and the economics
of the natural gas under this well. However, given the success of
the Chinese National Petroleum Corporation in the same region, we
are optimistic about this opportunity."
China continues to have a shortage of both natural gas and oil.
While world prices have come down, prices in China have remained on
a stable increase trend and China is still a large importer of
natural gas. In 2014, the price for stock natural gas station for
non-residential use increased approximately RMB0.4 ($0.06) per
cubic meter. During the first three quarters of 2014, imports of
natural gas increased approximately 9.3%. It is predicted that the
price might increase approximately another RMB0.4 ($0.06) per cubic
meter in 2015 for stock natural gas.
"Gulf does not know," Mr. Liu added, "if this project will be
commercially viable. Neither has it decided whether it will develop
these fields by itself or seek to partner with a company
specializing in this industry until after the assessment report
from third party has been completed."
"Nonetheless," Mr. Liu concluded, "We are very excited about
this new finding. The discovery of natural gas in our drilling area
might bring Gulf into a business segment with exceptional
opportunities in terms of both sales and profits."
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two
wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company
Limited ("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited
("SYCI"). The company believes that it is one of the largest
producers of bromine in China. Elemental Bromine is used to
manufacture a wide variety of compounds utilized in industry and
agriculture. Through SYCI, the company manufactures chemical
products utilized in a variety of applications, including oil and
gas field explorations and papermaking chemical agents. For more
information, visit www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release contain
forward-looking information about Gulf Resources and its
subsidiaries business and products within the meaning of Rule 175
under the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. The actual results may differ materially depending on
a number of risk factors including, but not limited to, the general
economic and business conditions in the PRC, future product
development and production capabilities, shipments to end
customers, market acceptance of new and existing products,
additional competition from existing and new competitors for
bromine and other oilfield and power production chemicals, changes
in technology, the ability to make future bromine asset purchases,
and various other factors beyond its control. All forward-looking
statements are expressly qualified in their entirety by this
Cautionary Statement and the risks factors detailed in the
company's reports filed with the Securities and Exchange
Commission. Gulf Resources undertakes no duty to revise or update
any forward-looking statements to reflect events or circumstances
after the date of this release.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu
Beishengrong@vip.163.com
IR Manager
Max Ma
Max_vx@163.com
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