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[May 2008]
Gengsheng Wins $870,000 Fracture Proppant Supply Contract
China Gengsheng Minerals Inc (Gongyi, China) has signed a contract with Shenyang Hongyuan Co Ltd (Shenyang, Liaoning Province, China). The total value of the contract is US$870,000.
According to the contract, the company will ship fracture proppants to Shenyang Hongyuan from May 2008 until the end of October 2008. Fracture proppant, a light, bauxite-based, grain-like material that has a round and smooth surface and a quality of resisting high pressure and acid corrosion, is used by drillers to release trapped pockets of oil and natural gas to enhance yields.
"We are excited about this contract, which is our largest to date in terms of the dollar value," said Shunqing Zhang, Chairman, CEO and President of Gengsheng. "Our fracture proppants sales in the first quarter have already exceeded fracture proppants sales for all of 2007 and we expect additional growth in this area during 2008."
www.gengsheng.com
ENDS