Profile: Recon Technology Ltd (RCON.OQ)
6 Dec 2013
Recon Technology, Ltd, incorporated on August 21, 2007, is a limited liability company. The Company provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in People's Republic of China (PRC). It provides services designed to automate and enhance the extraction of petroleum. The Company control by contract the PRC companies of Beijing BHD Petroleum Technology Co., Ltd. (BHD), Nanjing Recon Technology Co., Ltd. (Nanjing Recon) and Jining ENI Energy Technology Co., Ltd. (ENI) (collectively, the Domestic Companies). Its business is focused on the upstream sectors of the oil and gas industry. It derives revenues from the sales of hardware products, software products, and services. Its products and services involve procedures of the extraction and production of oil and gas, and include automation systems, equipment, tools and on-site technical services.
The Company’s products and services include equipment for oil and gas production and transportation, oil and gas development tools and equipment, oil and gas production increasing techniques and automation system and service. It operates business by cooperating with oil companies and their subsidiaries, petroleum administration bureau and local service companies. It has conducted automation projects for plants in three of China’s four producing oilfields, including Daqing, Shengli and Xinjiang. Most actual control of its direct and indirect clients can be traced to Sinopec and CNPC. During fiscal year ended June 30, 2011 (fiscal 2011), Sinopec accounted for approximately 16.49% of its revenues. During fiscal 2011, CNPC accounted for approximately 60.20% of its revenues. It provides products and services to oil and gas companies and their affiliates through the Domestic Companies.
Equipment for Oil and Gas Production and Transportation
BHD researched, developed and implemented an oilfield furnace that is automated. The Company serves as an agent for the Unigas Burner, which is designed and manufactured by UNIGAS, a European burning equipment production company. The burner it provides has automation, energy conservation, high turn-down ratio, high security and environmental safety. The test separator is the measurement device for gas and oil in metering plants. Oil and gas mixture spray on the oil block cap after entering into the separator through the oil pipeline. The diffused oil falls along the pipe wall to the separator bottom and through the draw-off pipe. In the process, the small oil droplets in the gas adhere to the umbrella wall and fall along the wall of the pipe. The de-oiled gas enters the pipeline through the freeing pipe at the top of the separator for measurement.
Oil and Gas Development Tools and Equipment
The Company’s packers of fracturing model are used with the security joint, hydraulic anchor, and slide bushing of sand spray in the well. It is used for easy seat sealing and sand-up prevention. The production packer separates different oil layers, and protects the oil pipe from sand and permeability, so as to promote the recovery ratio. The water injection packer injects water into different layers rather than injecting on a large scale; this can reduce cost and promote effectiveness.
Oil and Gas Production Increasing Techniques
The Company’s fissure shaper product is used along with a perforating gun to effectively increase perforation depth by between 46% and 80%, shape stratum fissures to locate oilfields and increase the output of oil wells. Its sand prevention in oil and water well processes additives that are resistant to elevated temperatures into resin sand, which will be transported to the bottom of the well through carrying fluid. The resin sand goes through the borehole, pilling up and compacting at the borehole and oil vacancy layer. Then an artificial borehole wall is formed, functioning as a means of sand prevention. This sand prevention technique has been adapted to more than 100 wells, including heavy oil wells, light oil wells, water wells and gas wells.
The Company’s water locating and plugging technique conducts a self-sealing-test during multi-stage usage and is reliable to separate different production sets. The water location switch forms a complete set by which the water locating and plugging can be finished in one trip. The tubular column is adaptable to several oil drilling methods and is available for water locating and plugging in second and third class layers. It injects acid to layers under pressure which can form or expand fissures. The treatment process of the acid is defined as fracture acidizing. Its electronic broken-down service resolves block-up and freezing problems by generating heat from the electric resistivity of the drive pipe and utilizing a loop tank composed of an oil pipe and a drive pipe.
Automation System and Service
The Company’s pumping unit controller functions as a monitor to the pumping unit, and also collects data for load, pressure, voltage, startup and shutdown control. Its RTU used to monitor natural gas wells and collects gas well pressure data. Its wireless dynamometer and wireless pressure gauge products replace wired technology with cordless displacement sensor technology. They are easy to install and reduce the working load associated with cable laying. Its electric multi-way valve for oilfield metering station flow control is used before the test separator to replace the existing three valve manifolds. It facilitates the electronic control of the connection of the oil lead pipeline with the separator. Its natural gas flow computer system used in natural gas stations and gas distribution stations to measure flow.
Recon SCADA oilfield monitor and data acquisition system applies to the oil well, measurement station, and the union station for supervision and data collection. The Company’s EPC service of pipeline SCADA system is a service technique for pipeline monitoring and data acquisition after crude oil transmission. EPC service of oil and gas wells SCADA system is a service technique for monitoring and data acquisition of oil wells and natural gas wells. EPC service of oilfield video surveillance and control system is a video surveillance technique for controlling the oil and gas wellhead area and the measurement station area. Technique service for digital oilfield transformation includes engineering technique services, such as oil and gas SCADA system, video surveillance and control system and communication systems.
The Company competes with Beijing Echo Technologies Development Co., Ltd., Beijing Golden-Time Petroleum Measurement Technology Co., Ltd, Schlumberger Limited, Baltur Technologie Per IL Clima, Honeywell International, Inc., Emerson Process Management and Rockwell Automation, Inc.
Recon Technology Ltd
Room 1902, Building C, King Long
International Mansion, No. 9 Ful
BEIJING BEJ 100107