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CALGARY, Nov. 26, 2012 /CNW/ - Raise Production Inc. (TSX-V: RPC;) ("Raise" or the "Company" or the "Corporation") is pleased to announce its financial and operating results for the third quarter ended September 30, 2012.
Eric Laing, President and Chief Executive Officer commented, "During the third quarter, the Company achieved several significant strategic events in accordance with planned timelines of the Corporation. These events are:
- Please note that we are now using the term "horizontal well bore production system" instead of previously named "TDSP Horizontal Pump". We have decided to use the term, "production system" as we believe it serves as a better description of the multiple technology development and the production methods these new technologies will encompass.
- We completed a private placement of funds totaling $3,500,000 through the private wealth division of a global investment dealer. The funds are specific in their use for ongoing operations and funding of the new horizontal well bore production system. The Company closed its Edmonton facility along with its downtown Calgary offices and all Company functions are now in one location in the SE industrial area of Calgary. This consolidation adds efficiency into product development, engineering segments and ensures seamless communication and execution of our business development plans.
- The composition and skill set of the board of directors was changed to reflect the new direction of the company. New board members joining the Company are Ken Zinger and Rod Graham, both of whom bring diverse business backgrounds and strong financial and service company experience to the board of directors.
- The Company has hired Mr. Scott Riddell as V.P. Business Development. Mr. Riddell brings many years of investment and investor relations experience with strong strategic market planning to the Company. The addition of Mr. Riddell is a necessary step for the Company as it advances toward beta testing and potential commercialization of the horizontal well bore production system. Building customer relationships, establishing business agreements and bridging investor expectations with solid planning from other segments of the Company will be a critical ingredient of our success.
Based on the potential of the horizontal well bore production system, the Company has made the strategic decision to commit its full efforts to the development of this technology. Raise will continue to support existing customers who have its "Activator" HSP pump and the gas well optimization products installed, but the Company will no longer pursue growth in these markets. The Company believes that the future success will be with new product development.
Please note that we are now using the term "horizontal wellbore production system" instead of previously named "TDSP Horizontal Pump". We have decided to use the term, "production system" as we believe it serves as a better description of the multiple technology development and the production methods these new technologies will encompass.
Mr. Bill Petrie resigned from the Board to focus on development of his other business interests. Mr. Tim Hoar retired from the board after being a member for over 15 years. The Company is deeply appreciative of the contributions both of these directors have made to the Company.
We will continue to manage our budgets and costs, direct our resources to ensure continued commitment to the technology development growth path and build shareholder value. We remain confident of the future."
Highlights of the third quarter included:
- Significant progress has been made on the conceptual design and material testing for the horizontal well bore production system. The Corporation plans to conduct prototype testing at the field level in early 2013.
- The Corporation entered into an Agency Agreement with the private wealth division of a global investment dealer (the "Agent") dated effective July 10, 2012 for a private placement up to an initial amount of $3,500,000. The purpose of the private placement is for the development and commercialization of the horizontal well bore production system. This transaction closed on August 14, 2012. The Corporation issued 23,333,333 units (the "Units") for net proceeds of $3,244,637. Each Unit is comprised of one Common Share of the Corporation at a price of $0.15 and one non-transferrable Common Share Purchase Warrant exercisable to acquire one Common Share at a price of $0.225 until February 14, 2014. The Corporation paid the Agent a cash consideration equal to 7% of the total aggregate gross proceeds of the Offering plus certain expenses. The Corporation also issued 1,633,333 compensation options to the Agent. Each Compensation Option is exercisable to acquire one Unit at a price of $0.15 per Unit until February 14, 2014.
As at November 26, 2012, the Corporation has continued to maintain its financial liquidity and is focused on developing its horizontal well bore production system. Raise continues to believe a large potential market exists in commercializing these systems for deployment in light oil reservoirs. The Company is planning on field testing the system in the first quarter of 2013. Such testing is contingent on securing an oil & gas industry partner, and the Company is endeavoring to conclude such an agreement. Based on current projections the Corporation's cash balance is expected to fund operations and development of the horizontal well bore production system until the end of 2013.
RESULTS OF OPERATIONS
The following table is a summary of selected financial and operational information for the three and nine months ended September 30, 2012 with comparative 2011 figures.
|Selected comparative information|
|For the three months||For the nine months|
|ended September 30||ended September 30|
|Sales and marketing||10,828||31,788||46,758||105,891|
|Amortization of capital and intangible assets||28,842||25,746||81,526||60,975|
|Interest and bank charges||-||5,659||-||14,594|
|Stock based compensation||325,983||14,637||351,095||34,443|
|Loss from continuing operations before income taxes||(797,865)||(412,283)||(1,548,715)||(1,020,459)|
|Provision (recovery) for income taxes|
|Current income taxes||-||-||-||-|
|Deferred incomes taxes||-||(27,681)||-||(19,000)|
|Net loss from continuing operations||(797,865)||(384,602)||(1,548,715)||(1,001,459)|
|Net loss for the period||(797,865)||(47,528)||(1,548,715)||(145,575)|
|Loss per share, basic and diluted||(0.019)||(0.002)||(0.047)||(0.005)|
Raise Production Inc.'s complete unaudited, consolidated financial statements, accompanying notes and Management's Discussion and Analysis for the quarter ended September 30, 2012 will be available on Raise's website at www.raiseproduction.com and on SEDAR at www.sedar.com
About Raise Production Inc.
The Company is an innovative oilfield service company that focuses its efforts on the production service sector, the production services segment utilizes its patented products to enhance and increase ultimate production in both conventional and unconventional gas, oil, and CBM wells. The Company is listed on the TSX Venture Exchange under the trading symbol RPC: TSX-V.
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.
This news release may contain forward-looking statements, including statements regarding the Private Placement and the use of proceeds from the Private Placement and other statements that are not historical facts. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
SOURCE: Raise Production Inc.
For further information:
Eric Laing, President and Chief Executive Officer
Raise Production Inc.
2620, 58th Avenue SE
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: www.raiseproduction.com