RocketFrac Closes Oversubscribed Initial Round of Financing
May 01, 2017, 16:48 ET
Waterless Fracing Technology Draws High Level of Investor Interest
CALGARY, May 1, 2017 /CNW/ - RocketFrac Services Ltd. ("RocketFrac"), a privately held company developing a next generation propellant-based fracing tool based out of Calgary, Alberta, Canada, is pleased to announce the successful closing of an oversubscribed initial round of financing. The initial offering of $1 million was well received and oversubscribed, resulting in a total raise of $3.1 million.
"We are very excited about the overwhelming response to this initial round of financing," said Annelise Freeman, President and CEO of RocketFrac and a Professional Geologist with over 25 years of oil and gas experience. "We are developing one of the most exciting breakthrough technologies to impact the oil and gas fracing industry in decades and we appreciate the support our new shareholders have shown RocketFrac. We are confident that our fracing process will rapidly become a valuable alternative, perhaps even the preferred choice, for oil and gas exploration and development companies around the globe".
RocketFrac was established to create a next generation, and substantially disruptive, propellant-based fracing tool that will increase the permeability of rock formations and improve overall well performance at a lower cost, and all without the use of water. Propelled by a customized blend of solid rocket fuel the enhanced system will generate a clean controlled burn that delivers superior well productivity. Solid rocket fuel is safe to transport, requires no special handling, and has no potential for spills and costly cleanups.
RocketFrac has been collaborating with Orbital ATK Inc., an internationally renowned aerospace and defense manufacturer, to design a next generation fracing tool that will add horizontal fracturing capabilities to Orbital ATK's current and proven Gen I solid rocket propellant well fracing system. This predecessor technology has been applied to more than 600 vertical wells to date, resulting in production increases averaging 225%. RocketFrac's Gen II version of the technology, the PSI-KICKTM tool (pronounced "psychic"), will be fully functional in both vertical and horizontal well applications and will be a powerful enhancement of Orbital ATK's proven Gen I technology.
Effective for on and offshore applications in both vertical and horizontal wellbores, with no size or lateral restrictions in borehole length, RocketFrac's PSI-KICKTM tool will be compact enough to be transported by a single truck, and since it does not require water or proppant, the system can be quickly and easily assembled on-site in even the most remote and arid locations.
Currently RocketFrac and Orbital ATK are collaborating to complete the development of the Gen II technology by taking the PSI-KICKTM tool from concept to deployment and refining the solid rocket-fuel technology. Final design and build of the PSI-KICKTM tool will be completed in Calgary and the system will be extensively tested over the next 12 to 18 months.
"With consumption of oil and gas continuing to grow globally and more countries looking to secure a reliable source of domestic energy, RocketFrac is positioned to become a major player in more cost-effective, environmentally-responsible fracing systems" stated Freeman. "RocketFrac's system will ultimately provide the oil and gas industry with a safe, affordable, and much greener alternative to hydraulic fracturing and at the same time improve overall well productivity."
About RocketFrac Services Ltd. ("RocketFrac"):
RocketFrac Services Ltd., a private Canadian company headquartered in Calgary, Alberta, is developing a fracing tool propelled by a customized blend of solid rocket fuel which not only improves well productivity but addresses some of the most pressing problems facing the oil and gas industry today. Environmentally safe and completely waterless, RocketFrac's technology maximizes fracing efficiencies, and delivers sustainability and economic value for oil and gas producers and their stakeholders. RocketFrac holds a licensing agreement with Orbital ATK for advancement of their break-through, patent pending tool for well stimulation, as well as the associated propellant technology. The license agreement covers thirteen countries, including Canada and the United States.
About Orbital ATK ("OA"):
As a global leader in aerospace and defense technologies, Orbital ATK designs, builds and delivers space, defense and aviation-related systems to customers around the world, both as a prime contractor and as a merchant supplier. Headquartered in Dulles, Virginia, OA employs approximately 12,500 people in 18 states across the U.S. and several international locations. OA trades on the New York Stock Exchange under the ticker symbol OA with a US $5.7 billion market cap.
SOURCE RocketFrac Services Ltd.
For further information: Annelise Freeman, President and CEO, Tel: (403) 471-7631, Email: [email protected], www.rocketfracservices.com