Recon Technology Wins RMB 9.6 Million Oilfield Production Informatization System Integration Project
Rhea-AI Summary
Recon Technology (NASDAQ: RCON) announced that its domestic affiliate, Nanjing Recon Technology, has won multiple bid sections of a production informatization system integration technical service project from a leading domestic oil and gas operator. The total contract value is about RMB 9.6 million (around US$1.33 million), excluding value-added tax, with the final amount to be settled based on the actual workload of each sub-project.
The service schedule will follow the operator's project progress, with construction and final acceptance expected to be completed by July 2028. According to Recon Technology, this competitive tender win strengthens its position in China's oil and gas digitalization and automation market and expands its service layout in domestic oilfield informatization construction and technical services.
Positive
- RMB 9.6 million oilfield informatization contract, workload-settled
- Project runs through July 2028, supporting multi-year service revenue visibility
- Win over multiple leading players reinforces position in oilfield digitalization
- Expands domestic oil and gas market service layout and customer base
Negative
- Final contract value depends on actual workload of each sub-project
- Project completion and acceptance scheduled no later than July 2028, extending execution period
Market Reaction – RCON
Following this news, RCON has gained 7.47%, reflecting a notable positive market reaction. Argus tracked a peak move of +192.5% during the session. Our momentum scanner has triggered 47 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $3.08. Trading volume is exceptionally heavy at 109.0x the average, suggesting very strong buying interest.
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In recent years, Recon Technology has continued to deepen its presence in the oil and gas digitalization and automation sector, steadily iterating its technical solutions and project management system. The Company has developed mature end-to-end service capabilities covering production informatization system integration, intelligent station construction and industrial IoT deployment. Backed by consistent delivery quality and solid technical strength, the Company has continuously expanded its footprint in
"We are very honored to stand out among multiple leading industry players and be selected as the technical service provider for this key production informatization construction project," said Mr. Shenping Yin, Chief Executive Officer of Recon Technology. "This award validates our technical capabilities and project execution strength in oilfield automation and digitalization, and reflects the trust from our core clients. As
This contract represents an important expansion of Recon Technology's service layout in the domestic oil and gas market. Driven by the industry-wide digital upgrading trend, the Company is well positioned to capture more growth opportunities in oilfield informatization construction and technical services.
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 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 and phrases such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," "will likely result," "look forward to," "well positioned," 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.
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SOURCE Recon Technology, Ltd