GUFR to Become Chemical Supplier to China's Largest Oilfield
LOS ANGELES and SHENZHEN, China, April 30 /Xinhua-PRNewswire-FirstCall/ -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GUFR), a leading provider of chemical products used in oil and gas field explorations, oil and gas distribution, and oil field drilling announced today that its wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Company Limited ("SYCI"), signed a supplier agreement with Daqing Oilfield Company. Gulf Resources expects this to contribute at least $650,000 in revenues during 2007 with a net margin contribution of approximately 15 percent.
Daqing Oilfield Co., Ltd. ("Daqing") is a wholly owned subsidiary of China National Petroleum Corporation operates China's largest oilfield. Daqing's main business is the exploration and production of oil and natural gas for use by large enterprises located throughout China and internationally. SYCI was chosen as a supplier because of its high quality petrochemical products combined with its ability to develop a portfolio of specialized proprietary products exclusively for Daqing. All products were rigorously tested by Daqing prior to the finalization of this agreement. The Company anticipates revenues directly related to this agreement will grow by at least twenty percent per year for the foreseeable future.
Mr. Ming Yang, CEO of GUFR, stated "This agreement with the Daqing Oilfield Company is an important step in the branding of Yuxin as a high quality provider of petrochemical products for marquee' customers. This relationship emanated from the strong business foundation we have established and positions us for future growth both domestically and internationally."
About Gulf Resources, Inc.
Gulf Resources, Inc., operates through two wholly-owned subsidiaries: SCHC which is engaged in manufacturing and trading Bromine and Crude Salt in China. Bromine is used to manufacture a wide variety of bromine compounds used in industry and agriculture, and SYCI which manufactures and sells chemical products utilized in oil & gas field explorations and as papermaking chemical agents. For more information, please visit http://www.gulfresourcesco.com .
Safe Harbor Statement:
Certain statements in this news release may contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and crude salt, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Ethan Chuang
Tel: +1-714-858-1147
Email: Ethan@gulfresourcesco.com
Matthew Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
