Raise Production Inc. Announces First Quarter 2013 Financial Results and Operations Update

CALGARY, May 29, 2013 /CNW/ - Raise Production Inc. (TSX-V: RPC) ("Raise" or the "Company") has released its financial results for the three months ended March 31, 2013.

PRESIDENT'S UPDATE

Overview

A number of accomplishments have been achieved in the first quarter of this year. Some of those were discussed in the annual letter and update. To refresh, some salient points were:

  • Secured a commitment for a two well test of the Horizontal Well Bore System (the "System) with a major industry partner,
  • Applied for Canadian and U.S. patents along with CPT (Cooperative Patent Treaty) for international patent protection, based on 42 proprietary device and method applications for the System,
  • Secured a major service company for the provision of field deployment services and manpower required to cover a large geographic area, and
  • Completed a $2 million non-brokered equity financing.

Engineering and Product Development

As stated in the last update, the engineering group has been solely focused on the Horizontal Well Bore System. An issue surfaced on a critical component that had the potential to affect the longevity of the pump. This issue surfaced in the latter testing schedule. We have received new component parts for the pump and, at the time of this writing, have tested the part for pressure integrity, and are now testing the part for accelerated longevity (lifecycle) durability. We are confident that we have a potential solution in place. In addition to the major producer, we announced in the last update that the Company was pursuing other possible test partners. We can confirm that another smaller producer has agreed to deploy and test the System once it has been successfully deployed and operated for six weeks with the primary test partner. The second test partner will give the Company diverse System deployment in a different geographic area to compare results and reservoir response to the System.

Operations

The Company continues to receive interest in specific "Interlift" products; however the cost to manufacture these is too high to be attractive or profitable. We are continuing to explore avenues to bring this product line to market through a bigger and more diverse organization. We are continuing to have sales on patented items on a small scale.

The distributorship agreement with CJS for the Activator Hydraulic Submersible Pump is looking quite promising with an increase in customer interest.  Continued historical weakness in gas pricing remains a factor in the sales process; however international markets may prove more fruitful over time. We remain appreciative of all of our shareholders and stakeholders for their support throughout this development period.

RESULTS OF OPERATIONS

Statement of Operations (Unaudited)

           
  Three Months ended March 31
    2013    2012
         
         
Revenue    $  13,177 $ 145,295
         
Cost of sales       16,898   110,129
Gross profit (loss)     (3,721)   35,166
         
Expenses         
  General and administration     470,545   299,363
  Research expenses     342,300   38,680
  Stock based compensation     174,010   11,856
  Depreciation and amortization     37,721   26,342
    1,024,575   376,241
         
Net loss $ (1,028,297) $ (341,075)
         
         
Net loss per share - basic and diluted    $ (0.02) $ (0.01)

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, commercialization of products and operations; the successful completion of product testing, 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
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

Profil de l'entreprise

Raise Production Inc.

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