Stock Update (NASDAQ:RCON): Here’s Why Shares of Recon Technology, Ltd. Are Rising 19% Today
Recon Technology, Ltd. (NASDAQ:RCON) investors cheer the news that the company was awarded a patent for its proprietary Oilfield Wastewater Treatment Device by China’s State Intellectual Property Office.
Recon Technology shares reacted to the news, rising nearly 19% to $1.73 in Tuesday’s trading session.
Oily wastewater, as the outcome of the oilfield exploitation process, contains water, various oils, chemical polymers, heavy metals, microorganisms, and suspended and dissolved solids. The treatment of oilfield wastewater represents not only serious operational issues, but also a major environmental challenge to all oil producers. As a total solution provider to Chinese stated owned petroleum companies, Recon has developed the Oilfield Wastewater Treatment Device to improve the effectiveness of water treatment, reduce infrastructure investment and operating costs for oil companies. The patented device can separate the sewage sludge and oil pollution from crude oil within one integrative equipment and at the same time, produce water that is qualified for direct discharge, reinjectionor other oil-company projects, thus significantly increasing the processing effectiveness and cost-savings of wastewater treatment. In addition to this patent, the company is currently applying for several other patents designed to facilitate removal of toxic substances and metallic elements from wastewater.
Mr. Shenping Yin, Chairman and CEO of Recon stated, “We started developing new products for oilfield wastewater treatment last fiscal year and have achieved preliminary business results. Two major advantages of our device and resolution are to dramatically save space and reduce costs for our clients, which are particularly attractive, given current low oil prices. We are confident that, with this new patent and our other innovative technology and business solutions in wastewater treatment, we will further enhance our strength in this high growth business segment.”(Original Source)
Recon Technology Ltd. engages in developing, and marketing of automated oilfield services and products that enhance the extraction of petroleum in China. Its products and services includes oilfield surface engineering, and oilfield down-hole engineering. The company was founded by Yin Shenping, Chen Guangqiang, and Li Hongqi on August 21, 2007 and is headquartered in Beijing, China.