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[May 2008]
Gengsheng Scores Again With Ceramic Fracture Proppant Order
China Gengsheng Minerals Inc (Gongyi, China) has been successful in securing more Chinese orders for the ceramic proppant part of its business. It announced last week that it had signed a fracture proppants supply contract with PetroChina Co Ltd for its Shengli Oil Field in Shandong province. The total value of the contract is US$2.2 million.
According to the contract, Gengsheng will start shipping fracture proppants immediately through to the end of 2008. Fracture proppant is a light, bauxite-based, grain-like material that has a round and smooth surface and is capable of resisting high pressure and acid corrosion. It is used by drillers to release trapped pockets of oil and natural gas to boost yields.
"We are thrilled to announce this multi-million dollar contract with China's largest oil and gas producer and distributor," said Shunqing Zhang, Chairman, CEO and President of Gengsheng. "Following the 230-ton contract with CNOOC announced in early April, this new contract is another milestone for us and it's a major success in our efforts to strengthen relationships with all three major oil companies in China. With these large-scale, new contracts, we expect accelerated sales growth in our fracture proppant business this year."
www.gengsheng.com
ENDS