BEIJING, Sept. 7, 2021 /PRNewswire/ -- Recon Technology
Limited (NASDAQ: RCON) ("Recon" or the "Company") today announced
that its subsidiary, Gansu BHD Environmental Technology Co., Ltd
("Gansu BHD"), and Yumen Oilfield Engineering Construction Co., a
wholly-owned subsidiary of China National Petroleum Corporation
("CNPC" or "PetroChina"), signed a service contract for the
hazardous waste disposal technology service project of various oil
production plants of Yumen Oilfield. The contract amount is
approximately RMB9 million
(approximately USD1.4 million) and
the contract period is one year.
According to the contract, Gansu BHD is required to transfer and
safely dispose of about 6,000 tons of hazardous waste such as oily
sludge temporarily stored in various oil production plants in Yumen
Oilfield.
Gansu BHD has a 50-year land use right for 26,235.59 square
meters in Yumen City and built a production line with an annual
treatment capacity of 60,000 tons of oilfield oily waste
comprehensive utilization and harmless comprehensive disposal (the
"Oil Sludge Treatment Project") with a cumulative investment of
approximately RMB40 million. Gansu
BHD has also achieved a necessary and scarce hazardous waste
operating permit issued by the Jiuquan Environmental Protection
Bureau in Gansu province. The
Company currently owns a 70% interest in Gansu BHD.
Management Comments
Mr. Chen Guangqiang, Founder and CTO of Recon, said, "We are
delighted to have won the contract of the sludge disposal for
several oil production plants in the Yumen Oilfield. Since we
started production in 2019, we have been awarded six contracts for
the disposal of sludge from oil production plants under the Yumen
Oilfield, with the service tonnage of individual contracts
increasing from tens of tons to hundreds of tons to thousands of
tons per contract. Gansu BHD's sludge treatment project line is
currently the only such treatment facility in Gansu Province. Gansu BHD has taken the lead
in developing the domestic oil sludge treatment technology and has
been continuously improving its own production and treatment
process. This is the basis for us to continue to gain recognition
from oilfield companies and obtain new service contracts. Gansu BHD
has signed an aggregate of about RMB18
million (approximately USD2.8
million) in service contracts."
Mr. Chen added, "Since 2018, Recon has been continuously
investing in its oilfield environmental protection business as we
believe this is a key development direction. Our focus is mainly on
oily wastewater treatment and oily sludge treatment for oilfields.
Oilfield sewage and sludge treatment technically challenging,
requiring formulation of pretreatment chemicals, and synergistic
application of physical and chemical methods to treat oil sludge
effectively. Our disposal experience in oilfield sewage and sludge
treatment, bolstered with patents in this area, has allowed us to
increase the proportion of oilfield sewage and sludge business in
the overall revenue composition. We are continuing to bid for
projects and approach new potential customers, so we expect that
the company will continue to obtain contracts for related services
in the coming year."
About Recon Technology, Ltd ("RCON")
Recon Technology, Ltd (NASDAQ: RCON) is China's first NASDAQ-listed non-state owned
oil and gas field service company. Recon supplies China's largest oil exploration companies,
Sinopec (NYSE: SNP) and The China National Petroleum Corporation
("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: http://www.recon.cn/.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Our actual
results, performance or achievements may differ materially from
those expressed or implied by these forward-looking statements. In
some cases, you can identify forward-looking statements by the use
of words such as "may," "could," "expect," "intend," "plan,"
"seek," "anticipate," "believe," "estimate," "predict,"
"potential," "continue," "likely," "will," "would" and variations
of these terms and similar expressions, or the negative of these
terms or similar expressions. Such forward-looking statements are
necessarily based upon estimates and assumptions that, while
considered reasonable by us and our management, are inherently
uncertain. Factors that may cause actual results to differ
materially from current expectations include, among others,
fulfillment of the Yumen Oilfield contract; changes in the
competitive environment in our industry and the markets where we
operate; our ability to access the capital markets; and other risks
discussed in the Company's filings with the U.S. Securities and
Exchange Commission ("SEC"), including our Annual Report on Form
20-F, which filings are available from the SEC. We caution you not
to place undue reliance on any forward-looking statements, which
are made as of the date of this press release. We undertake no
obligation to update publicly any of these forward-looking
statements to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward-looking statements, except to the extent required
by applicable laws. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements.
For more information, please contact:
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: info@recon.cn
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SOURCE Recon Technology, Ltd.