CALGARY, Nov. 25, 2013 /CNW/ - Raise Production Inc. (TSXV: RPC) ("Raise" or the "Company") has released its financial results for the three and nine months ended September 30, 2013.
Horizontal Wellbore System
Raise Production Inc. ("Raise Production or the "Company") successfully deployed its first prototype Horizontal Wellbore System (the "System") with our industry partner in August 2013. The System was function tested for a 60 day period. As reported in our press release dated October 21, 2013, the results were positive and confirmed that continuation of the three well test strategy should proceed. Some conclusions from the test indicate:
- The System can be deployed around the build section and out into the horizontal section of the wellbore with close tolerance components;
- A conventional single or double service rig with no additional special modifications, other than some minor rental equipment, is capable of performing the deployment; and
- The System activates and functions as designed and is capable of moving liquids and gasses in phase flow along the horizontal section of the wellbore and up to a pre-determined height in the build section.
The points noted above have moved us significantly along the learning curve and have enhanced our understanding of flow regimes, how these regimes interact with pumps in horizontal and vertical configurations and what we need to accomplish in the next test in order to maximize impact on well productivity. The next deployment will effectively mirror a commercial type System. It is anticipated that the next installation will commence mid-December 2013.
Hydraulic Submersible Pump ("HSP")
The Company has taken a write down on its remaining HSP inventory. Continued weak market demand for unconventional shallow gas completions has led us to conclude that significant movement in inventory reduction over the next twelve months is unlikely.
Engineering and Product Development
The Company's engineering group has been focused on the modification and development of components we found would be required in the commercial deployment as a result of the test install. The engineering completed to date indicates that the Company may have some potential patentable designs in addition to the horizontal pump patent applications currently in process.
The Company is excited to be entering the initial stage of commercial type Systems, we are looking forward to having results that verify the need for the System and the manner in which it allows horizontal oil and gas to be produced.
We remain appreciative of all shareholders and stakeholders for their support throughout this development period.
|RESULTS OF OPERATIONS|
|Statement of Operations (Unaudited)|
|Three months ended Sept 30||Nine months ended Sept 30|
|Cost of sales||73,383||33,550||92,950||188,234|
|Gross profit (loss)||17,352||(13,483)||116,603||55,860|
|General and administration||328,758||552,320||1,111,994||1,177,978|
|Depreciation and amortization||43,366||28,842||123,957||81,526|
|Net loss and comprehensive loss||$||(880,117)||$||(1,113,535)||$||(2,312,438)||$||(1,929,953)|
|Net loss per share - basic and diluted||$||(0.01)||$||(0.03)||$||(0.04)||$||(0.06)|
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
E-mail: [email protected]
Susan Scullion, Chief Financial Officer
E-mail: [email protected]
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: www.raiseproduction.com