Our research and development efforts are focused on, among other things, improving technical and other features of our products and services; developing new products, processes and services; and providing customers with customised solutions that address their specific needs and requirements.Our research and development efforts are focused on addressing specific needs of our customers to improve the oil and gas production and the operational efficiency, which generally requires less time and capital commitments.

Our research and development activities primary focus on improving the technical and other features of (i) electronic pressure gauges; (ii) downhole tools for well completion and reservoir services; (iii) chemical fluids and (iv) integrated technology to enhance oil and gas production and operational efficiency. Our subsidiaries in Canada are committed to the research and develop ment of electronic pressure gauges with high precision that can be applied in high-pressure and high-temperature downhole conditions. Our other research and development activities were primarily carried out in conjunction with providing specific services to our customers. Our engineers in our business line departments analyse the geological and other features of reservoirs wells to design and engineer specific operation plans to meet the needs of our customers. Our engineers sometimes encounter technically challenging problems in addressing the specific needs of our customers and in such cases there may be various discussions, testing and other activities involved to address these challenges. With the customers’ approval, improvement proposals will be applied and used in on-site operations. If such proposals are successful, we will consider applying for patents on the techniques underlying such proposals. Positive outcomes have been achieved by combining our on-site operational experience with our deep understanding of existing tools, equipment and procedures.

Through our research and development efforts, we have developed well completion techniques that have allowed us to greatly improve well productivity. For example, we have developed the integrated technology of well testing, completion testing and acidising that combines the traditional three string trips into one, which significantly reduces project duration and costs. Also, we have developed the PPS series of electronic pressure gauges, which have a high level of precision in monitoring well pressure and are widely applied in well testing operations worldwide. Currently, it is one of the few models of pressure gauges in the world that can operate reliably for an extended period of time under extreme downhole conditions at temperatures as high as 200°C.

As a result of our continuous research and development efforts, we have been able to enhance the quality of the oilfield services we provide and have become a full range technical services provider. We will continue to focus on our research and development efforts to further improve our position as one of the leading Chinese nonstate-owned oilfield services provider.

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