Beijing-based Recon Technology Ltd. (NASDAQ: RCON), an oilfield services provider primarily working in China, said Dec. 1 that it developed a fracking system that it “expects to commercialize” as “a potential substitute for the expensive foreign systems widely used in China at present.”
The Frac BHD system is comprised of a sleeve, float shoes, setting balls, hanger, hydraulic anchor, tieback seal assembly and an integrated openhole packer that will be used to isolate sections of horizontal wells when collecting oil and gas, the company added. It “provides a solution for multistage stimulation” during the fracturing process.
Yin Shenping, Recon’s CEO, said, "our new fracking system reflects our years of onsite experience, and incorporates innovations such as check valves to facilitate tool string installation and avoid midway setting accidents. We believe it will match the performance and reliability of the imported systems currently in use and can be competitively priced."
Frac BHD is scheduled to enter markets in March 2015, and Yin said the product might generate between US$1.5 and US$2 million in revenue during 2015.
"Fracking in China has been held back largely due to its extremely high cost," he added, noting, "and our new openhole packer is another step toward addressing this problem.”
“It is also another example of how Recon is enhancing production and reducing exploration costs across a wide spectrum of oil and gas production activities. With our proven technical and engineering skills we believe Recon will maintain leadership in the industry, as well as participate in the growth we see ahead in fracking," he said.
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