CALGARY, Sept. 27, 2018 /CNW/ - Acceleware Ltd. (TSX-V: AXE) ("Acceleware" or the "Company") is pleased to announce the completion of contribution agreements with both Sustainable Development Technology Canada ("SDTC") and Emissions Reduction Alberta ("ERA"). Acceleware can now access up to a total of $10 million in non-repayable, joint funding from SDTC and ERA to complete a commercial-scale RF XL pilot of Acceleware's radio frequency heating technology at Prosper Petroleum Ltd.'s ("Prosper") Rigel property in northeast Alberta. Acceleware estimates the cost to complete the RF XL pilot will range between $16 to $20 million, and over the next 15 months, will execute its plan to fund the remaining $6 to $10 million with a combination of financing from additional industry partners and other activities.
Acceleware has been advancing the development of its proprietary and patented RF XL technology since 2010. The Company believes RF XL has the potential to save billions of dollars in oil sands production costs by reducing both capital and operating costs, while offering major environmental benefits, including immediate greenhouse gas ("GHG") emission reductions, a substantial reduction in land use, no requirement for external water or solvents and no tailings ponds. As an electrically driven process, Acceleware also believes that RF XL technology can provide a clear pathway to zero-GHG production of heavy oil and oil sands.
"We are proud to have the support of both federal and provincial funders, along with the commitment of an industry partner like Prosper. That support will be instrumental as we take our cleantech innovation to market and highlights the importance of this technology to the future of the oil industry in Canada," said Geoff Clark, CEO of Acceleware. "Improving the sustainability of heavy oil and oil sands production is vitally important to the industry, and all stakeholders. It is through the application of innovative technology solutions, like Acceleware's RF XL, that the industry can sustainably grow, responsibly develop resources, and ultimately benefit all Canadians."
Acceleware is poised to build on its successful Q1 2017 1/20th scale test with the deployment of a commercial-scale (1,000 meter) prototype RF XL system. Under the terms of its previously announced agreement with Prosper, Acceleware will add new wells to an existing well site to expedite construction times and reduce project costs. Acceleware anticipates Prosper will provide sufficient road access to the site during the first quarter of 2019, and in the event of any delays to road construction Acceleware will utilize winter access roads to begin site preparations. The Company expects to complete the final engineering design for the pilot before the end of 2018 and anticipates the completion of all site upgrades and drilling during the first six months of 2019.
Upon start-up, Acceleware plans to test key operational aspects of the RF XL technology, including overall system efficiency and oil production rates. The initial heating phase is scheduled to run for six months utilizing a 2-megawatt silicon carbide prototype generator developed in partnership with General Electric. Acceleware owns the design and IP specific to this new generator which will improve power delivery, and cost per watt by a factor of ten times versus existing technologies. These performance and efficiency gains are key to RF XL's potential to reduce operating and capital costs for oil producers. The first working module of the prototype generator is on-track for delivery and testing in November 2018.
Engagement of Investor Relations Firm
Acceleware has engaged 5 Quarters Investor Relations, Inc. ("5QIR") to provide financial communications, investor relations ("IR"), and corporate communications services. 5QIR will work with Acceleware's leadership team to advance its broad communications goals and support continued growth. 5QIR will provide support at levels that will vary depending on Acceleware's needs, billed on an hourly basis, including IR, financial communications, and enhancing engagement with shareholders and other stakeholders. The engagement can be cancelled at any time by either party with 30 days' written notice. 5QIR acts at arm's length to Acceleware and does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest.
Acceleware (www.acceleware.com) is an innovator of clean-tech oil and gas technologies comprised of two business units: Radio Frequency (RF) Enhanced Oil Recovery; and Seismic Imaging Software and Software Acceleration Services.
Acceleware is developing RF XL and Modular RF, its patented and patent-pending low-cost, low-carbon production technologies for heavy oil and oil sands that are materially different from any heavy oil recovery technique used today. They will use no water, require no solvent, have a small physical footprint, can be redeployed from site to site, and can be adapted to a multitude of reservoir types, while expected to greatly reduce and eventually eliminate production greenhouse gas emissions (GHGs). In shallow oil sands implementations, no tailings ponds will be required.
Our seismic imaging software solutions are state of the art for high fidelity imaging, providing the most accurate and advanced imaging available for oil exploration in complex geologies. Acceleware's professional services team accelerates computationally intense applications for clients to speed up product design, analyze data and help them make better business decisions.
Acceleware is a public company on Canada's TSX Venture Exchange under the trading symbol "AXE".
About Sustainable Development Technology Canada
Sustainable Development Technology Canada (SDTC) is a foundation created by the Government of Canada to advance clean technology innovation in Canada by funding and supporting small and medium-sized enterprises developing and demonstrating clean technology solutions.
About Emissions Reduction Alberta
ERA works with industry, government and the innovation community to invest in and advance the solutions Alberta needs to reduce greenhouse gas emissions and build a stronger, more diversified economy. To date, ERA has committed to more than $375 million in funding to 128 projects with a total value of over $2.6 billion.
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally means information about an issuer's business, capital, or operations that are prospective in nature, and includes disclosure about the issuer's prospective financial performance or financial position.
The forward-looking information in this press release can be identified by terms such as "anticipates", "believes" "potential", "would" and "will", and includes information about the timeline of the commercial-scale test of RF XL, the expectations for future intellectual property development and the commercial availability of RF XL technology, as well as the anticipated benefits of that technology, and the likelihood of Acceleware raising additional financing. Acceleware assumes that the current timeline for the RF XL pilot is achievable, that research and development effort including the commercial-scale test plans will result in commercial-ready products, and that future capital raising efforts will be successful.
Actual results may vary from the forward-looking information in this press release due to certain material risk factors. These risk factors are described in detail in Acceleware's continuous disclosure documents, which are filed on SEDAR at www.sedar.com.
Acceleware assumes no obligation to update or revise the forward-looking information in this press release, unless it is required to do so under Canadian securities legislation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this release in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE Acceleware Ltd.
For further information: Mike Tourigny, VP Commercialization, RF Heating, Tel: +1 (403) 249-9099, [email protected], Acceleware Ltd., 435 10th Avenue SE, Calgary, AB, Canada T2G 0W3, Tel: +1 (403) 249-9099, www.acceleware.com