Recon Announces Cooperation with CNPC to Establish Pressure Container Service Center in Kazakhstan
BEIJING, Feb. 18, 2015 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a leading independent Chinese oilfield services provider to oil and gas companies and their affiliates, today announced that it had entered into a 5-year renewable cooperation agreement with Aktobe Petroleum Machinery Co. Ltd. ("Aktobe Petroleum Machinery"), a joint venture between China Petroleum Technology & Development Corporation (CPTDC) and China National Petroleum Corporation (CNPC), with respect to the construction of technical service center for pressure containers such as heating furnaces and separators. Pursuant to this agreement, Recon and Aktobe Petroleum Machinery will work together to develop the marketing, sales, maintenance and related services for pressure containers in Kazakhstan.
Mr. Gunagqiang Chen, CTO of Recon, who has over 30 years of experience in oil and gas industry, stated, "Heating furnaces and separators have been one of Recon's leading hardware products for years. We've sold approximately 600 units of different kinds of heating furnaces since our inception. High combustion efficiency is one of our heating furnaces' major advantages. As our products are well accepted by customers, we are very proud to follow our clients to further expand our international market, which is one of our major growth strategies.
"This is another important development in our overseas operations after we won the contract to provide automation systems hardware and various maintenance services in Turkmenistan." Mr. Chen continued: "We discussed further developing our international market with the investors in 2014. This agreement demonstrates that Recon is able to steadily implement its growth strategy."
Mr. Chen also said, "According to this agreement, Recon will be in charge of marketing, sales, maintenance, quality control and after-sale services of heating furnaces and separators in Kazakhstan. For many years, we have focused on research and development and the improvement of our products' functionality, and as such, our products have been well accepted by our customers. Pursuant to this agreement, this technical center will provide all heating furnace and some other related parts of pressure container sales and services in middle Asia. As such, we anticipate our heating furnaces business will increase significantly in 2015."
Recon Technology, Ltd. is China's first independent oil and gas field service company listed on NASDAQ (RCON). Closely working with leading global partners, Recon has achieved rapid growth supplying China's largest oil and gas exploration companies, including Sinopec and China National Petroleum Corporation, with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures. The solutions Recon provides are aimed at increasing gas and petroleum extraction levels, reducing impurities, improving safety and lowering production costs. For additional information, please visit www.recon.cn.
Statements made in this release with respect to Recon's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Recon. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions, judgments and beliefs in light of the information currently available to it. Recon cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, 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. Therefore investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.
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