BEIJING, Jan. 19, 2021 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a China-based independent solutions integrator
in the oilfield service, electric power and coal chemical
industries, today announced that the Company successfully completed
the design and implementation of an intelligent control platform
system (the "System") for North China E&P Company (the
"North China Branch") of China
Petroleum & Chemical Corporation ("Sinopec"), according to a
technology service agreement (the "Agreement") signed between one
of Recon's subsidiaries and the North
China Branch of Sinopec in October
2020.
The System will help Sinopec analyze the data collected by the
sensors installed on electrical submersible pumps (the "ESPs") of
gas wells using AI algorithm automatically and monitor and control
the operation of the ESPs according to the analysis. This is the
first time that intelligent technology is used in Sinopec's
production wells using ESPs. Many gas and oil producing wells
require an artificial lift to increase the flow of fluids when the
reservoir pressure is not high enough. Typically, ESPs are used but
are not always operating efficiently and can cause costly downtime
for operators. The several months' testing and examination has
proved that the System is efficient and effective in prolonging
service life of ESPs and improving economic performance of gas
wells.
Pursuant to the Agreement, the
Company was required to develop the System by
December 31, 2021, in exchange of
consideration of RMB 1.8 million
(approximately USD $276,000). The
System has been completed and passed the preliminary inspection of
Sinopec. Sinopec has paid the Company more than half of the
consideration.
Management Commentary
"We are so proud and honored to make this technological
breakthrough together with Sinopec," said Mr. Guangqiang Chen, CTO and one of the founders of
Recon, "We aim to embrace AI technology in traditional oil and gas
production process and to realize the digitalization and
intelligence of industrial production in our industry. We have been
devoting massive resources into R&D for this plan. Recon is
transforming to an advanced technology development company."
Mr. Chen continued, "Recon has been updating its supervisory
control and data acquisition system from automation to intelligent
automation. We will continue to improve our system diagnosis
algorithm and accuracy of our intelligent control system technology
and its performance. We will also continue to explore applicable
scenarios of our intelligent technology with Sinopec. We believe
this effort will continue to bring Recon more business
opportunities and reward our shareholders."
About Recon Technology, Ltd.
Recon Technology, Ltd. (NASDAQ: 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 (NYSE: SNP) and The China National Petroleum Corporation,
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.
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.