- China’s Largest Offshore Oil Producer Orders 230 Tons -
GONGYI, China, April 2, 2008 /Xinhua-PRNewswire-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC 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, today announced that it has signed a contract with The China National Offshore Oil Corporation (CNOOC), to supply 230 tons of fracture proppants to CNOOC’s subsidiary, CNOOC Tianjin Zhongtai Huawei Industries Limited ("CNOOC Tianjin"), in Tianjin, China.
Fracture proppant is a light, bauxite-based, grain-like material that has a round and smooth surface and a quality of resisting high pressure and acid corrosion. It is used in oilfield drilling operations to release trapped pockets of oil and natural gas.
"We are excited that CNOOC again chose Gengsheng to supply this important yield-enhancing product," said Mr. Shunqing Zhang, Chairman, CEO and President of Gengsheng. "As China’s largest offshore oil producer, CNOOC made 12 new oil and gas discoveries and had 10 successful appraisals last year. This year CNOOC is targeting a 16% production increase. The high level of activity at Chinese national oil companies such as CNOOC forms a favorable macro environment for Gengsheng as we aim to substantially grow our fracture proppant business in 2008."
The Company will immediately ship fracture proppants to CNOOC Tianjin, in accordance with the terms of the contract.
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of mineral-based industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels, to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China’s Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd. For more information about the Company, please visit http://www.gengsheng.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Gengsheng Minerals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the Company’s ability to perform under the contract with CNOOC; the general ability of the Company to achieve its commercial objectives, including the growth of its fracture proppant business in 2008; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
In China:
Mr. Fulong Zheng
Investor Relations
China Gengsheng Minerals, Inc.
Tel: +86-371-6405-9846
Email: zflde@163.com
In the U.S.:
Valentine Ding
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9412
Email: vding@hfgcg.com
