CALGARY, ALBERTA — (Marketwired) — 11/18/14 — Raise Production Inc. (TSX VENTURE: RPC) (“Raise” or the “Company”) has released its financial results for the three and nine months ended September 30, 2014.
PRESIDENT–S UPDATE
The Company is pleased to provide an update on its Horizontal Wellbore Production System (the “System”) progress and other corporate developments.
The Company has continued its efforts to develop a replacement part for the previously announced third party component that has compromised prior deployments of its System.
We have experienced good progress to date on qualifying a replacement part after testing numerous improvement iterations. Testing has been rigorous and time consuming. We have identified that the malfunction was due to two different mechanisms in the same part. Either one or combination of both would cause a system breakdown. We are confident that we have resolved one of those mechanisms with a new part design and an improved process for manufacturing. Tests are ongoing to prove consistent and competent function for the first mechanism identified. We are now in the process of qualifying a material and production process for the second mechanism.
We are currently working with two qualified suppliers to solve the second mechanism and expect to be able to deploy a complete new System early in 2015. Although we have sourced qualified suppliers in our original timeframe, the delay in deployment is due to supplier delivery times around the holiday season. The additional time taken to ensure that our next installation has a high probability of success is in the best interests of the Company and its shareholders. We are approaching a solution that we anticipate will address the third party issues experienced to date.
Late in the second quarter of 2014 and throughout the third quarter we began to experience success in the application of our proprietary vertical rod pump. Our new rod pump, developed ancillary to the development of the System, has been deployed in several test applications and are proving to be operating as designed. We will continue to deploy a number of additional rod pumps in different reservoirs and monitor their performance. Early in 2015, we will be in a position to determine the best commercial path forward with this product when test results prove to be sustainable.
We remain focused on the development of the System of which the rod pump will be a component. The development of the rod pump further demonstrates the ingenuity and creativity of the people here at Raise.
The Company continues to have a solid balance sheet with a cash balance that will to enable it to continue the development of the System into the latter part of 2015.
We would like to express our thanks to our shareholders and test partners for their patience during this time. We believe that this setback does have a solution and we will be getting back in the ground as soon as possible.
RESULTS OF OPERATIONS
Statement of Operations (Unaudited)
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 patented 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 finance its new product development, the successful completion of further product development and testing, 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 opinions 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. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. 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 outcomes.
Contacts:
Eric Laing, President and Chief Executive Officer
E-mail:
Susan Scullion, Chief Financial Officer
E-mail:
Scott Riddell, VP, Business Development
E-mail:
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: