CALGARY, March 26, 2013 /CNW/ - Raise Production Inc. (TSXV: RPC)
("Raise" or the "Company") is pleased to provide this update to its
shareholders regarding its business development and outlook.
Raise's engineering group has continued its research & development
initiatives on its unique horizontal wellbore production system (the
"System"). Considerable accelerated life testing has been completed on
key components, design and configuration issues associated with bench
testing are being overcome and the Company is currently engaged in
manufacturing and assembly of its first proto-type System for
deployment in a shallow light oil reservoir. After detailed analysis
of various reservoirs, Raise has targeted the Viking formation in
Saskatchewan and Alberta as the zone for initial System deployment.
In its third quarter report for 2012, Raise stated it was planning to
field test the System in the first quarter of 2013, but such testing
was contingent on securing an industry partner. Raise has ongoing
discussions with various oil & gas industry participants, with a view
to securing an initial test well for System deployment, but due to
commercial and logistical issues the Company will not be able to
install a System prior to the end of this quarter. Raise is targeting
to conclude an agreement with a partner and make its first installation
in the second quarter of this year.
In the third quarter report of 2012, Raise announced it had made the
strategic decision to commit its full efforts toward the development of
the System. Consistent with this, the Company is pleased to announce
it has entered into an agreement with CJS Production Technologies Inc.
("CJS") to allow CJS exclusive distributorship rights to Raise's
patented Activator Downhole Hydraulic Submersible Piston Pump ("HSP").
The agreement is for an initial five year term with renewal
provisions. CJS has agreed to purchase Raise's existing HSP inventory
on a staged basis beginning in July of 2013 and ending in July 2014 and
thereafter Raise will earn a royalty on each HSP unit sold by CJS.
Eric Laing, President and Chief Executive Officer of Raise, commenting
on the progress of the business said, "I'm exceptionally proud that the
Raise team has moved us so far in such a short time toward a working
proto-type of our horizontal production system technology. As with any
R&D project there are ups and downs in technology development, but I am
very impressed that in a little over a year we have gone from
conceptual system drawings, through patent application and to now
approach a product ready to put in the ground. We are excited to go to
the field after spring break-up and feel this technology can change the
way industry manages its horizontal wellbores. I look forward to
commercialization of this System initially for the Viking and later
this year after successful deployment of the proto-type proceeding with
the continued expansion of the technology to fit deeper more prolific
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.
This news release contains certain forward-looking statements. All
statements, other than statements of historical fact, are forward
looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from these
anticipated in such statements.
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
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