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.
"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
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SOURCE Recon Technology, Ltd.