CALGARY, Alberta, Nov. 21, 2018 (GLOBE NEWSWIRE) — Raise Production Inc. (TSX-V: RPC) (“Raise” or the “Company”) has released its financial results for the three and nine months ended September 30, 2018.
PRESIDENT’S UPDATE
The Company is pleased to provide an update to its shareholders on its financial results and recent activities related to its operations.
For the nine months ended September 30, 2018, total revenue earned, which consists primarily of sales of the Company’s High Angle Reciprocating Pump (“HARP”), increased 144% to $289,418 and gross margin on these sales increased 332% to $75,353 compared to the same period in the prior year. The Company continues to gain traction in this market and it anticipates additional revenue growth and increased gross margins over the remainder of the year and into 2019 as manufacturing costs are reduced due to increased sales volumes.
The Company has three systems that can be used independently or in combination in horizontal wellbores:
- the High Angle Reciprocating Pump (“HARP”);
- the Raise Efficient Artificial Lift (“REAL”) formerly known as the High Angle Lift Solution (“HALS”); and
- the Horizontal Artificial Recovery Technology (“HART”).
HARP (High Angle Reciprocating Pump)
Canada
The Company now has enough historical production data to announce that it has increased oil production rates across a variety of formations by an average of approximately 28%. The data also indicates reduced decline rates. The combination of increased oil rates and flatter decline curves is delivering incremental reserves.
The Company has identified numerous high potential customers that will benefit from this product line and is executing its strategic sales approach.
USA
The Company, in conjunction with its USA partner, Endurance Lift Solutions, has successfully installed its first HARP in an Eagle Ford well. Initial production results have been higher than anticipated and the HARP is performing as expected with the newly improved components. Several additional installs are being evaluated, including the Powder River Basin, San Andreas and additional Eagle Ford wellbores.
International
The Company expects its first installation in Romania to be completed by year end. The Oman operation is in the final stages of company registration and legal approval.
REAL (Raise Efficient Artificial Lift), formerly known as the HALS (High Angle Lift Solution)
The REAL install, referred to in the Company’s press release dated August 21, 2018, has been rescheduled to the end of 2018 or early 2019. Discussions for additional installations in the Montney region in 2019 are also underway.
HART (Horizontal Artificial Recovery Technology)
It is becoming increasingly evident that there is a need for the HART system due to steep decline curves over most horizontal wellbores. The Company is actively pursuing a potential partner to assist in bringing this product to market.
In conclusion, Eric Laing, President and CEO, said:
“I am very excited to report that the Company is accomplishing its goal. We set out to improve the type curve and the results indicate that this has occurred”.
RESULTS OF OPERATIONS
Statements of Loss and Comprehensive Loss
| Three months ended Sept 30 | Nine months ended Sept 30 | |||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||
| Revenue | $ | 80,840 | $ | 25,946 | $ | 289,418 | $ | 118,466 | ||||
| Cost of sales | 54,887 | 11,850 | 214,065 | 101,033 | ||||||||
| Gross margin | 25,953 | 14,096 | 75,353 | 17,433 | ||||||||
| Other income | 10,947 | 3,529 | 16,688 | 20,522 | ||||||||
| Expenses: | ||||||||||||
| General and administration | 549,976 | 420,520 | 1,358,831 | 1,158,762 | ||||||||
| Stock-based compensation | 88,220 | 37,320 | 277,138 | 61,292 | ||||||||
| Research expenses | 41,494 | 46,496 | 119,730 | 46,496 | ||||||||
| Depreciation and amortization | 20,062 | 22,625 | 60,185 | 77,024 | ||||||||
| Finance costs | 823 | 1,586 | 2,235 | 6,586 | ||||||||
| 700,575 | 528,547 | 1,818,119 | 1,350,160 | |||||||||
| Net loss and comprehensive loss | $ | (663,675 | ) | $ | (510,922 | ) | $ | (1,726,078 | ) | $ | (1,312,205 | ) |
| Net loss per share – basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) |
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 oil and gas wells.
For further information please contact:
Eric Laing, President and Chief Executive Officer
E-mail: elaing@raiseproduction.com
Susan Scullion, Chief Financial Officer
E-mail: sscullion@raiseproduction.com
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: www.raiseproduction.com
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 to obtain financing to provide working capital to fund operations, the availability of credit, the ability to commercialize products and operations, the potential to increase recoverable reserves for customers by utilization of the HALS and HART systems, estimates regarding current and projected cash resources and cash flow anticipated sales, 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; the availability of skilled labour, services and equipment, general economic and financial market conditions, the legislative and regulatory environment of the jurisdictions where the Company carries on business 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 Company’s products 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.