Recon Announces Development of AI-based Control System of Electric Submersible Pump

Rhea-AI Summary

Recon Technology, Ltd. (NASDAQ: RCON) announced the successful implementation of an AI-based intelligent control platform for Sinopec's North China Branch. This project, finalized under a technology service agreement from October 2020, aims to enhance the efficiency of electrical submersible pumps (ESPs) in gas wells. The System has proven effective in extending ESP service life and optimizing economic performance. Sinopec has paid over half of the RMB 1.8 million (approximately USD 276,000) contract value. Recon's CTO expressed pride in this technological advancement, emphasizing ongoing commitments to R&D and digital transformation in oil and gas operations.

Positive

• Successful completion of AI-based intelligent control platform for Sinopec.
• Proven efficiency in extending service life of ESPs and improving gas well performance.
• Received over half of the RMB 1.8 million contract payment.

Negative

• None.

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.

Management Commentary

"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
Email: info@recon.cn  

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SOURCE Recon Technology, Ltd.

FAQ

What is the significance of Recon's AI platform for Sinopec?

Recon's AI platform enhances the efficiency of electrical submersible pumps, optimizing gas well performance.

When did Recon sign the technology service agreement with Sinopec?

The technology service agreement was signed in October 2020.

What is the contract value for the project completed by Recon?

The contract value is RMB 1.8 million, approximately USD 276,000.

What is the expected impact of Recon's technology on its shareholders?

The technology is expected to create more business opportunities and rewards for shareholders.

What percentage of the contract payment has Sinopec made to Recon?

Sinopec has paid over half of the contract amount.