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.
Dragon Gate Investment Partners LLC
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