NEW YORK, Jan. 2, 2020 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced its
subsidiary Nanjing Recon Technology Co., Ltd. ("Nanjing Recon") won
the bid to build the automation system for PetroChina Jidong
Oilfield Company ("Jidong Oilfield"). The winning price is
RMB 9.5 million (approximately
$1.36 million) per year, for a
three-year construction period from January
1st, 2020 to December 31st,
2022.
The current bidding price includes compensation for
predetermined materials, services and other fees to compete each
year's project. Pursuant to the bidding document, the materials
bought by Nanjing Recon will be reimbursed by Jidong Oilfield with
a 20% discount of the predetermined price under some temporary
circumstances, so the total consideration will be reduced
accordingly. The Company expects that this reduction will not be
material to the winning price.
The oil & gas industry is transitioning toward automation to
minimize human labor in the oil & gas process. The automated
oilfield receives data from numerous instrumented sources, runs the
data through algorithms and simulation models, and makes decisions
with or without humans in the decision loop.
"Recon is one of the companies leading the digital
transformation in the oilfields. Our automation system can help
oilfields reduce more than 90% labor cost and enhance their
production efficiency at the production site," Mr. Shenping Yin, co-founder and CEO of Recon said.
"We expect there is a 20% growth in our automation business this
year. In order to maximize productivity, reduce costs, and minimize
risks, we are continuously improving machine-learning algorithms
and cloud-based software suite, meanwhile increasing adoptions of
Internet of Things (IoT) in the oilfields."
About Recon Technology,
Ltd.
Recon Technology,
Ltd. (RCON) is China's first non-state-owned
oil and gas field service company listed on NASDAQ. Recon
supplies China's largest oil exploration
companies with advanced automated technologies, efficient
gathering and transportation equipment and reservoir stimulation
measures for increasing petroleum extraction levels, reducing
impurities and lowering production costs. Since 2017, the Company
has expanded its business operations into other segments of the
broader energy industry including electric power, coal chemicals,
renewable energy and environmental protection in the energy and
chemical industries. Through the years, Recon has taken
leading positions on several market segments of the oil and gas
field service industry. Recon also has developed stable long-term
cooperation relationships with its major clients, and its
products and service are well accepted by clients. For additional
information please visit: www.recon.cn.
Safe Harbor Statement
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.
IR contact:
Dragon Gate Investment
Partners LLC
Tel: +1(646)-801-2803
Email: RCON@dgipl.com
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SOURCE Recon Technology, Ltd.