Recon Technology, Ltd. (RCON), an independent oilfield services provider operating primarily in China, said the company, along with its wholly-owned PRC subsidiary, Recon Hengda Technology (Beijing) Co., Ltd., has entered into a memorandum of understanding with Qinghai Huayou Downhole Technologies Co., Ltd. Or QHHY, an oilfield service provider in Qinghai province.
Following the MOU, the company has agreed to acquire a 100 percent stake in QHHY with a combination of cash and the company stock.
The terms and conditions of a definitive agreement are currently being negotiated between the two parties. Further details will be disclosed upon completion of the definitive agreement.
Shenping Yin, Chairman and Chief Executive Officer of Recon, said, "...QHHY's expertise in downhole technology will further strengthen and complement our existing product and service offerings."
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