Recon Awarded Mega $5.85 Million Contract to Provide Upgrades Service for Large Mid-Asia Gas Field

Rhea-AI Summary

Recon Technology (NASDAQ: RCON), China's first NASDAQ-listed non-state-owned oil and gas field service company, has secured contracts worth $5.85 million to upgrade and retrofit automation systems for a major Asian gas field. The project, scheduled for completion within the next calendar year, involves maintenance services to ensure the gas field's capacity supply.

The company, which provides services to China's largest oil exploration companies Sinopec and CNPC, views this as a significant milestone in its international market expansion, following its previous international contract from 2012. The award demonstrates Recon's technical capabilities and strong relationships in the oilfield automation market.

Positive

• Secured significant contract worth $5.85 million
• Expansion into international markets beyond China
• Project completion expected within one year
• Demonstrates technical capabilities in oilfield automation

Negative

• Contract value relatively modest compared to industry standards
• High competition in the sector mentioned by CEO

News Market Reaction

-4.46%

7 alerts

-4.46% News Effect

+16.3% Peak Tracked

-10.0% Trough Tracked

-$5M Valuation Impact

$97M Market Cap

0.1x Rel. Volume

On the day this news was published, RCON declined 4.46%, reflecting a moderate negative market reaction. Argus tracked a peak move of +16.3% during that session. Argus tracked a trough of -10.0% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $97M at that time.

Data tracked by StockTitan Argus on the day of publication.

BEIJING, Aug. 5, 2025 /PRNewswire/ -- Recon Technology Ltd. ("Recon" or "the Company"), a China-based provider of oilfield and low-carbon energy services, announced today that one of its domestic affiliated entities has been awarded major contracts to upgrade and retrofit related automation systems for some large Asian gas field. These contracts are valued at approximately $5.85 million, and the services provided by the entity in these contracts are expected to be completed within the next calendar year. These maintenance services are intended to ensure the capacity supply of the gas field, which has been completed and is operational.

"Despite the tough competition, we are honored to have won these contracts", said Mr. Shenping Yin, CEO of Recon, "This is another significant contract for us, following the automation service and maintenance contract we secured outside China in 2012. It is also an important milestone in our expansion into the international market. This project demonstrates Recon's technical capabilities and strong customer relationships in the oilfield automation market."

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of China's first NASDAQ-listed non-state-owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec and The China National Petroleum Corporation ("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 within several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients. For additional information please visit: http://www.recon.cn/.

Forward-Looking Statements

Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this press release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-F and any subsequent half-year financial filings on Form 6-K filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.

View original content:https://www.prnewswire.com/news-releases/recon-awarded-mega-5-85-million-contract-to-provide-upgrades-service-for-large-mid-asia-gas-field-302521794.html

SOURCE Recon Technology, Ltd

FAQ

What is the value of Recon Technology's (RCON) new contract in 2025?

Recon Technology secured contracts valued at $5.85 million for upgrading and retrofitting automation systems at a large Asian gas field.

When will RCON complete the Asian gas field upgrade project?

The maintenance services and upgrades are expected to be completed within the next calendar year from August 2025.

What services does Recon Technology (RCON) provide to Chinese oil companies?

Recon provides advanced automated technologies, gathering and transportation equipment, and reservoir stimulation measures to major Chinese oil companies like Sinopec and CNPC.

Who are Recon Technology's main clients in China?

Recon's major clients are Sinopec and The China National Petroleum Corporation (CNPC), China's largest oil exploration companies.

What is significant about RCON's status on NASDAQ?

Recon Technology (RCON) is the first NASDAQ-listed non-state-owned oil and gas field service company from the People's Republic of China.