Recon Announces Successful Completion of Zhongyuan Oilfield Fracturing Service Project

Recon Technology

announced today that its fracturing projects in China Petroleum and Chemical Corporation's ("Sinopec") Zhongyuan oilfield have been accepted by the client, marking completion of the project. The Company initially introduced the Baker Hughes' Frac-PointTM -Open Hole Fracture System to Zhongyuan Oilfield at the end of 2011. During the Company's fiscal year ended June 30, 2013, Recon signed several fracturing service contracts with an aggregate contract value of RMB 30 million (or US$4.8 million) with Sinopec Zhongyuan oilfield. According to Zhongyuan's final assessment report, Recon applied horizontal well fracturing in 12 wells (4 oil wells and 8 gas wells), and achieved a "100% success ratio" with no accidents or injuries. Compared to normal fracturing services, horizontal well fracturing technology could raise the daily oil yield by 12 tons, and daily gas yield by 15,000 cubic meters. These results showed increased yield and economic benefit and suggest that horizontal well fracturing may be applied in Chinese common oil-water wells and shale-gas wells. "Our successful introduction and use of horizontal well fracturing lay a solid foundation for Recon's continuous