CALGARY, ALBERTA–(Marketwired – May 24, 2017) – Raise Production Inc. (TSX VENTURE:RPC) (“Raise” or the “Company”) has released its financial results for three months ended March 31, 2017.
PRESIDENT’S UPDATE
The Company is pleased to provide shareholders with an updated report on current activities regarding its Horizontal Wellbore Production System (the “System”) and recent developments related to its patent pending High Angle Lift Solution (“HALS”).
Horizontal Pumping System (the “System”)
The System has worked flawlessly over the last few months with the downhole pumps and surface unit controls giving continuous operation with the only required down time for routine maintenance of compressors. The Company has been implementing various optimization scenarios to assess what expected production increases may be seen from this older wellbore. To date, we are confident that all production is being produced from the toe area and not from the depleted heel area and will be accretive to heel production once the well is reconfigured to allow full productivity. Based on this deployment and in additional discussions with Canadian and U.S. operators we are confident that the vast majority of horizontal wellbores are disadvantaged in terms of productivity from the toe area compared to the heel sections.
High Angle Lift Solution (“HALS”)
The Company has deployed the last prototype test of its HALS for a major E & P company and, as stated in the last press release dated April 26, 2017 regarding previous installs, this new install has again produced outstanding results. Since the last press release, the Company has initiated a sales program to identify and engage the best candidates to bring this technology to the right market in the shortest time frame possible. The Company is excited to offer a number of options to industry operators that will eventually lead to the horizontal multiple pumps as the ultimate recovery method for stranded reserves in the toe area of wellbores.
Future Opportunities
The Company continues to receive positive feedback from some U.S. operators with interest in pursuing development of the System and the HALS for use in U.S. basins. The Company continues to be in discussions with a number of companies and will update shareholders as these talks progress.
RESULTS OF OPERATIONS
Statements of Loss and Comprehensive Loss
| Three Months ended March 31 | |||||||
| 2017 | 2016 | ||||||
| Revenue | $ | 7,400 | $ | 55,650 | |||
| Cost of sales | 6,999 | 38,471 | |||||
| Gross margin | 401 | 17,179 | |||||
| Interest Income | 2,859 | 5,964 | |||||
| Expenses: | |||||||
| General and administration | 291,890 | 361,828 | |||||
| Depreciation and amortization | 27,219 | 34,464 | |||||
| Stock-based compensation | 12,947 | 28,443 | |||||
| Finance costs | 3,021 | 4,983 | |||||
| 335,077 | 429,718 | ||||||
| Net loss and comprehensive loss | $ | (331,817 | ) | $ | (406,575 | ) | |
| Net loss per share – basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | |
Raise’s full unaudited condensed interim financial statements and management’s discussion and analysis will be filed shortly on the Company’s profile on the SEDAR website.
About Raise Production Inc.
The Company is an innovative oilfield service company that focuses its efforts on the production service sector, utilizing its proprietary products to enhance and increase ultimate production in both conventional and unconventional horizontal oil and gas wells.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Certain information included in this news release constitutes forward-looking statements under applicable securities legislation. Forward-looking statements or information typically contain or can be identified by statements that include words such as “anticipate”, “assume”, “based”, “believe”, “can”, “continue”, “depend”, “estimate”, “expect”, “forecast”, “if”, “intend”, “may”, “plan”, “project”, “propose”, “result”, “upon”, “will”, “within” or similar words suggesting future outcomes or statements regarding an outlook. Such forward-looking statements or information are based on a number of assumptions that may prove to be incorrect. Assumptions have been made regarding, among other things: the ability of the Company to obtain required capital to continue to finance its product development, the successful completion of further product development and testing within predicted timelines or at all, the ability to commercialize products and operations, the ability to adequately protect proprietary information and technology from its competitors; the ability to obtain partnering opportunities; the ability to attract and retain key personnel and key collaborators; and the ability to successfully compete in targeted markets.
The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to publicly update or revise any of the included forward-looking statements, except as required by applicable Canadian securities law. Forward-looking statements are based upon the current opinions, estimates, projections, assumptions and expectations of management of the Company as at the effective date of such statements and, in some cases, information supplied by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statement will not occur. These risks and uncertainties include, but are not limited to: the possibility that testing, deployment and commercialization of the System and Rod Pumps may not be successfully completed for any reason (including the failure to obtain the required approvals from regulatory authorities) and regulatory changes. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company’s continuous disclosure filings that are available at www.sedar.com.
Eric Laing
President and Chief Executive Officer
(403) 699-7675
elaing@raiseproduction.com
Raise Production Inc.
Susan Scullion
Chief Financial Officer
(403) 699-7675
sscullion@raiseproduction.com
www.raiseproduction.com