Gulf Resources Announces the Commencement of Trial Production at its First Natural Gas Well in Sichuan Province
December 31 2018 - 8:30AM
Gulf Resources (NASDAQ: GURE) ("Gulf Resources" or the "Company"),
a leading manufacturer of bromine, crude salt and specialty
chemical products in China, today announces that it has
successfully completed the test production at its first natural gas
well in Sichuan Province, China and will commence trial production
on January 1,2019.
The well will produce approximately 3,000-5,000 sq. meters of
natural gas per day. While the output is relatively small, the
Company expects it may increase gradually production throughout the
trial phase.
Gulf has signed an agreement with a local customer for the
output of the well. The agreement will take effect on January 1,
2019.
At this time, Gulf expects the trial phase to last approximately
6 months, after which the Company should begin commercial
production and ramp up gradually.
“We are pleased to have completed the test production,” Liu
Xiaobin, the CEO of the Company stated. “Our machinery is working
very well. We will enter the trial production phase and have
reached an agreement with our first customer taking effect on
January 1, 2019.”
“China is forcing many factories, including ours, to replace
coal by natural gas or other less polluting forms of energy. China
also has a shortage of natural gas. In 2018, it was the largest
importer of natural gas, “ Mr. Liu continued. “We are very excited
about the opportunities for natural gas production in Daying County
of Sichuan Province. Once our first well is in commercial
production, we will explore opportunities for other wells.”
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"),
and Daying County Haoyuan Chemical Company Limited (“DCHC”). 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, and materials for human and animal
antibiotics. DCHC was established to further explore and develop
natural gas and brine resources (including bromine and crude salt)
in China. 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 (Haiyan Xu)
beishengrong@vip.163.com
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