GONGYI, China, June 30 /Xinhua-PRNewswire-FirstCall/ -- China Gengsheng Minerals, Inc. (BULLETIN BOARD: CHGS) ("Gengsheng" or "the Company"), a leading manufacturer in China of industrial materials capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has signed a $1.46 million fracture proppants supply contract with China National Petroleum Corporation (CNPC)'s Jidong Oil Field in Tangshan, Hebei province.
According to the contract, Gengsheng will start shipping the medium- density and high-strength fracture proppants, as well as the high-density and high-strength ones immediately through the end of 2008. Fracture proppants are used by oil and gas drillers to extract pockets of oil and natural gas scattered underground. The high-density and high-strength kind of proppants are considered a more technologically advanced product and Chinese oil companies currently source them mostly from overseas manufacturers.
This is the second product sales contract Gengsheng has signed with CNPC this month. On June 4, 2008, it announced a $1.6 million fracture proppants contract with CNPC's Jilin Oil Group in Jilin province.
Overall, Gengsheng has inked a total of $5.3 million contracts from April to June 2008 to supply fracture proppants to major Chinese oil companies, including CNPC, China National Offshore Oil Corporation, and China Petroleum and Chemical Corporation.
"Our fracture proppants business continues to grow at a faster pace than we expected," said Mr. Shunqing Zhang, Chairman, CEO and President of Gengsheng. "We expect that this momentum in fracture proppants sales will help us meet our 2008 commercial objectives."
Recommended Reading
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.
E&P Highlights: April 22, 2024
2024-04-22 - Here’s a roundup of the latest E&P headlines, including a standardization MoU and new contract awards.