BEIJING, Nov. 12, 2010 (GLOBE NEWSWIRE) -- SinoTech Energy Limited (Nasdaq:CTE) ("SinoTech"), a fast-growing provider of enhanced oil recovery ("EOR") services in China, today announced a capacity expansion of its lateral hydraulic drilling ("LHD") service, one of the company's two core services, in response to growing customer demand. SinoTech has put two new LHD units into immediate operation to service its customers in the Dagang oilfield in northern China, bringing the number of LHD units that the company now operates across China to ten.
SinoTech holds exclusive rights to use LHD technology and related equipment in China. LDH is a method of increasing the output of crude oil or methane gas from existing vertical wells by using a high-pressure water jet to drill horizontal holes in multiple directions from the well to surrounding reservoirs, thereby increasing the flow of oil and methane gas. SinoTech's LHD units are self-contained, truck-mounted mobile facilities that can be driven directly to customers' oil or gas fields.
To meet customer demand for SinoTech's LHD solutions, the company intends to double the size of its LHD fleet to 20 units by the end of 2012.
"We are pleased to bring these two new units into operation which will enable us to better serve our growing customer base in China's oilfields and meet increasing demand for our LHD services across the country," said Mr. Guoqiang Xin, CEO of SinoTech.
"With China's thirst for oil increasing and the prospects for new oil discoveries diminishing, we anticipate strong growth in the use of EOR services, particularly LHD, at China's existing oilfields. The addition of these two new units, and the planned further expansion of our LHD fleet, ensures that SinoTech is well placed to capitalize on this trend."
In addition to LHD, SinoTech offers EOR solutions that utilize a molecular deposition film ("MDF") technology for which the company holds a PRC patent. SinoTech's MDF technology increases oil recovery from mature wells by displacing the residual oil that adheres to sedimentary rock or sand in oil reservoirs.
About SinoTech Energy Limited
SinoTech Energy Limited (Nasdaq:CTE) ("SinoTech") is a fast-growing provider of enhanced oil recovery ("EOR") services in China. SinoTech provides innovative EOR services to major oil companies in China using leading edge technologies, including certain patented lateral hydraulic drilling ("LHD") technologies, which the company has an exclusive right to use in China, and a molecular deposition film technology, for which the company holds a PRC patent. SinoTech also provides technical services to coalbed methane customers using the LHD technology.
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Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, SinoTech's goals and strategies, its future business development, growth of its operations, financial condition and results of operations, its ability to introduce successful new services and attract new clients, growth of the EOR services market in China and worldwide, its beliefs regarding its strengths and strategies, changes in the oil services industry in China, including changes in the policies and regulations of the PRC government governing the oil services industry, its access to current or future financing arrangements, and fluctuations in general economic and business conditions in China, and other risks and uncertainties disclosed in SinoTech's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to SinoTech's management as of the date hereof and on its current expectations, assumptions, estimates and projections about SinoTech and the oil and gas industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. SinoTech undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.
CONTACT: SinoTech Energy Limited, Beijing Investor and Media: Ms. Yanhui Guo + 86-10-8712-5555 rebecca.guo@sinotechenergy.com