Raise Production Inc. Announces Second Quarter 2013 Financial Results and Operations Update
CALGARY, Aug. 27, 2013 /CNW/ - Raise Production Inc. (TSX-V: RPC) ("Raise" or the "Company") has released its financial results for the three and six months ended June 30, 2013.
I am pleased to report that Raise Production Inc. ("Raise Production" or the "Company") has successfully deployed the first "Horizontal Wellbore System" (the "System") in a Viking formation well in Kindersley, Saskatchewan.
The deployment of multiple pumps with multiple control lines and associated equipment to protect and guide the equipment into place was accomplished without incident. The entire operation from retrieving the existing pump, production tubing, performing clean out operations and deploying a new system was done during daylight hours and completed in four days. The operation was proved to be safe, efficient and commercially viable in terms of deploying multiple pumps around well bore build sections from vertical to horizontal planes with close tolerance components.
This first system is a proto-type and not intended to be a full scale commercial product. The system is comprised of only two pumping units as compared to our current plans for commercial systems of four or more pumps depending on reservoir characteristics and horizontal length. Moreover, this test system is unique in that it was deployed with separate sets of control lines for each pump and additional components to facilitate various operational tests to better understand flow dynamics and relative contributions along the well bore.
We anticipate that in the future more experience with running procedures and the elimination of these additional components will reduce deployment times by approximately half and the associated costs will be significantly lower.
Following installation, the System was connected to both vertical lift equipment and the surface unit which controls the activation and speed of our pumps. Commissioning continued with calibration to existing facilities and completed with full activation of our System. All components, at date of writing, are functioning as per design criteria and we are now waiting for the well bore to stabilize before continuing with various testing protocols.
With this deployment, we have shown our System can be installed in conventionally configured cased hole horizontal well bores with the use of an industry standard service rig. Activation lines were clamped and banded to production tubing without incident and created no material deployment issues. We are satisfied with the outcome of the installation of this first test System.
Testing protocols are intended to occur over a 60 day period and are designed to provide detailed information regarding flow dynamics, System and vertical lift integration, impacts of deploying one compared with two pumping units, insight into reservoir characteristics along the horizontal section and volume and rate information. Following analysis of this test data we expect to inform shareholders of the results and specific plans for future deployments.
Raise Production is pioneering new artificial lift technology and methods with our System. Looking to the future, we have a learning curve ahead of us, but it is one that comes with a significant market opportunity.
This month's installation is the first time, to our knowledge, that the oil industry has deployed multiple pumps in a horizontal wellbore. There are many uncertainties to address and it will take a number of deployments to give us a complete picture of our final product. This first test System is just one step in the process.
Specifically this deployment was intended to test, in priority, deployment, functionality and to some extent production performance of our System design. To date, we are pleased with the results as we have installed and operated the System. We consider this a major success. As to production performance, I would caution shareholders from drawing too many conclusions from this deployment. Our pumps are located approximately 150 and 250 meters from the "heel" section of the horizontal. Positioning pumps at these intervals will provide some information regarding multiple drawdown points, but this test System does not position pumps deeper along the horizontal length toward the "toe" section, and as such does not capture the full impact of our pumping capability.
Future Systems will be designed with four pumps positioned along the entire length of the lateral section and those Systems will be specifically designed to test production performance and our theories regarding horizontal flow. We anticipate deploying such a System in the fall of this year.
RESULTS OF OPERATIONS
Statement of Operations (Unaudited)
|Three months ended June 30||Six months ended June 30|
|Cost of sales||2,669||44,556||19,567||154,684|
|General and administration||313,375||326,293||783,920||625,657|
|Depreciation and amortization||42,870||26,342||80,591||52,684|
|Net loss per share - basic and diluted||$||(0.01)||$||(0.02)||$||(0.03)||$||(0.03)|
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.
SOURCE Raise Production Inc.For further information:
Eric Laing, President and Chief Executive Officer
Susan Scullion, Chief Financial Officer
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: www.raiseproduction.com