Recon Technology, Ltd. is China's first listed non-state owned oil and gas field service company on NASDAQ.
Rochester, NY -- (ReleaseWire) -- 07/23/2018 --Investor News Source Featured Stock Profile, Recon Technology, Ltd. (NASDAQ:RCON), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, announced the completion of the first stage of its construction of a comprehensive disposal treatment project (the "Project") in Yumen city, Gansu province through its 51% subsidiary, Gansu BHD Environmental Technology Co., Ltd ("Gansu BHD"), which focuses on oilfield sewage treatment and oily sludge disposal projects. As previously disclosed by the Company, Gansu BHD purchased a 50 year land use right for a 26,235 square meter property to build the Project to serve the oilfield sewage treatment needs of Yumen Oilfield Company, China's first petroleum production base and a PetroChina Co., Ltd. ("PetroChina") subsidiary. The Project, which will have an annual processing capacity of 60,000 tons of oily waste, is the only such treatment facility located in Yumen city. As regulations prohibit the removal of such oily sludge from Gansu province, Gansu BHD is optimistic about the business opportunities for the Project, although it lacks a long-term agreement with Yumen Oilfield.
At this first stage of the Project, the construction of the bases and the major body of plants have been completed. The next stage will involve equipment installation and testing. In addition, because of the Company's implementation of improved project design, it estimates the total investment in the Project to decrease from RMB 100 million to RMB 40 million. The Company expects the Project to be operational by the end of the calendar year 2018 and to generate annual revenues for Gansu BHD of more than RMB 50 million, assuming full capacity.
Mr. Guangqiang Chen, director and CTO of Recon Technology, commented, "We are pleased with our progress on our comprehensive disposal treatment project. Our search for new efficiencies has contributed to a 60% decrease in the expected investment in the project, from RMB 100 million to RMB 40 million. We have completed the construction of the bases and the major body of the plants as we prepare to install our equipment and begin testing. We expect the disposal treatment facilities to be operational by the end of this calendar year."
Mr. Chen continued, "Given the launch of China's new environmental law and increased enforcement of this and other environmental laws, we believe Recon is well positioned to innovate in a changing industry landscape that has given rise to demand for new and more efficient treatment methodologies. The oily waste produced from drilling, transportation and refining in the Yumen oilfield system remains a persistent issue and our project through Gansu BHD is a cutting-edge attempt to resolve this issue."
Recon Technology, Ltd. RCON, is China's first listed non-state owned oil and gas field service company on NASDAQ. Recon supplies China's largest oil exploration companies, Sinopec SNP, +2.67% and 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: www.recon.cn.
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