SinoTech Further Expands LHD Service Capacity, Adds Two New LHD Units

/ Source: GlobeNewswire

BEIJING, April 4, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited (Nasdaq:CTE) ("SinoTech"), a fast-growing provider of enhanced oil recovery ("EOR") services in China, today announced that it has taken delivery of two new lateral hydraulic drilling ("LHD") units. The new units employ the latest generation of LHD technology, which SinoTech expects will enable further improvement in the productivity of its LHD services. The new units have gone into immediate operation in northern China. SinoTech is now the world's largest provider of LHD services, with 12 LHD units in operation across China.

SinoTech holds the exclusive rights to use LHD technology and equipment in China. LHD increases the output of crude oil or coalbed 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 or gas. SinoTech's LHD units are self-contained, truck-mounted mobile facilities that can be driven directly to customers' oil or gas wells.

"We are pleased to bring these two new generation units on stream, which enables us to meet fast growing demand from new and existing customers for our LHD services. As oil producers in China increasingly recognize the role that EOR technology can play in increasing production, we anticipate that demand for our high-efficiency, cost effective EOR services will continue to grow quickly. With today's announcement, and our plans for further growth, we are ensuring that SinoTech is well-placed to capitalize," said Mr. Guoqiang Xin, CEO of SinoTech.

"The new units have been put straight into operation in northern China to service growing customer demand in that region. As we build out our LHD capacity further, we expect to achieve even greater economies of scale," Mr. Xin added.

In addition to LHD, SinoTech offers an EOR solution that utilizes a molecular deposition film ("MDF") technology for which the Company holds a PRC patent. SinoTech's MDF technology increases oil output 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.

For more information, please visit .

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: Investor and media inquiries: Ms. Rebecca Guo SinoTech Energy Limited, Beijing + 86-10-8712-5567 Brunswick Group LLP Ms. Yue Yu +86-10-6566-2256