SHOUGUANG, China, May 03, 2017 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt, specialty chemical products, and natural gas in China, today announced a contract with Sichuan Heshun Natural Gas Sales Co.,Ltd, its first customer for its natural gas production in Sichuan Province.
Under the terms of the contract, Gulf will sell 8,000 cubic meters of natural gas each day to Sichuan Heshun Natural Gas Sales Co., Ltd. This amount will allow Gulf to satisfy its minimum revenue guarantee for its business operation. Sichuan Heshun Natural Gas Sales Co., Ltd will transport the natural gas from Gulf’s well to its customers in the local area.
During this initial period, Gulf will continue to increase its daily production gradually. As soon as Gulf is confident it can provide significantly larger amounts of natural gas on a consistent basis, it will secure contracts with other customers.
“We are very pleased to have secured our first contract for natural gas,” stated Liu Xiaobin, the CEO of Gulf Resources. “During this initial period, it is very important that we can deliver the natural gas we are promising. The company has received the product quality inspection report. We believe our first well can produce a large amount of natural gas. We further believe that there will be opportunities to drill many more wells. However, we must be careful to make sure that we can successfully deliver on all of our commitments. We do not want to take any short cuts that could jeopardize the substantial opportunity that we believe we have before us.”
“This is the first step in what we believe will be a very exciting business opportunity for Gulf and its shareholders,” Mr. Liu continued. “We are extremely pleased to be commercializing our natural gas discovery.”
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), Shouguang City Rongyuan Chemical Co, Limited (“SCRC”) and Daying County Haoyuan Chemical Company Limited (“DCHC”). The company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents. SCRC is a leading manufacturer of materials for human and animal antibiotics in China and other parts of Asia. DCHC was established to explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release 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, future 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 other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, 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.