Raise Production Inc. Announces Annual Results and Provides Operations Update
Calgary, Alberta--(Newsfile Corp. - April 25, 2019) - Raise Production Inc. (TSXV: RPC) ("Raise" or the "Company") has released its financial results for the year ended December 31, 2018.
HIGHLIGHTS FOR THE YEAR
- The Company continues to grow its foot print with the HARPTM technology in Canada.
- The Generation 2 HARPTM installs in the USA continue to perform well.
- Further Intellectual Property awards have been granted.
- For the year ended December 31, 2018, total revenue earned on the sales of the Company's HARPTM increased 27%.
- The Company anticipates additional revenue growth and increased gross margins over the remainder of 2019 and into 2020.
The Company is pleased to provide an update to its shareholders on its financial results and recent activities related to its operations.
The Company has three systems that can be used independently or in combination in horizontal wellbores:
- the High Angle Reciprocating Pump ("HARPTM");
- the Raise Efficient Artificial Lift ("REALTM") formerly known as the High Angle Lift Solution ("HALS"); and
- the Horizontal Artificial Recovery Technology ("HARTTM").
As part of the Company's commercialization effort, the decision was made to rebrand the HALS system as the Raise Efficient Artificial Lift ("REAL™") system.
During the last year the Company has advanced in many areas. The intrinsic value of the Company has been enhanced by additional Intellectual Property awards from international patent authorities that protect our products and methods. This includes the USA patent for the HARPTM system which validates the Company's ability to evolve decades old technology into a product suited for today's production in horizontal wellbores.
Additional highlights over the past year include:
- the Company added a highly experienced VP, Commercial Development in October 2018. Mr. Clint Booth has a proven track record to guide and execute the Company's sales and marketing initiatives;
- the Company added two new board members during the year, Mr. Dan Newman and Mr. Tom Kehoe. Mr. Newman represents our USA partner and shareholder, Endurance Lift Solutions. Mr. Kehoe brings the Company a much-needed level of experience with investor relations and investment banking; and
- the Company successfully passed its external safety audit of the Certificate of Recognition ("COR") program as recognized by the Alberta Association of Safety Partnerships with a 95% grade.
HARPTM (High Angle Reciprocating Pump)
The Company has graduated to its Generation 2 version of the HARPTM technology with improvements based upon experience in various operating conditions across North America. This new version permits a wider net cast for applications in terms of the well depths and various well fluid conditions. Although Raise has experienced industry cost cuts and risk aversion to new technology from operators in Canada it continues to see excellent results from Generation 2 installs over the last six months. With increased productivity, reduced operating costs, mitigation of gas locking and more consistent run times we are confident that these initial installs will facilitate growth in sales with repeat and new customers in the coming months.
The Company continues to grow its foot print with the HARPTM technology. Recent installs in northern Alberta have shown that the technology is proving valuable in newly drilled and fracked wellbores. Of three installs, two were new wells and the third an existing well experiencing severe gas lock issues which the HARPTM technology has eliminated. A fourth well for this customer has already been ordered for install at the end of the break-up season. The Company is data mining to identify operators in the same geographic area who are probably experiencing similar issues and are high potential sales targets.
The installation in the Cardium new wellbore, almost seven months ago has shown (from public production data based on an initial five months of production) that the decline curve has been flattened and that oil production is stabilized. Based on these results to date, Raise will be installing additional HARPs in the Northern (Montney) area and will continue to work with the Cardium producers to secure continuing growth in that area as primary targets.
The installs in the USA continue to perform well. Based on these results, the Company has recently shipped a total of 18 Generation 2 HARPTM systems to the Endurance distribution facility in Texas. The first eight HARPTM systems were shipped at the end of March 2019 and the remaining ten HARPTM systems were shipped the first week of April 2019. The Company is currently preparing proposals and well designs in conjunction with Endurance Lift Solutions ("ELS") for potential installations.
REALTM (Raise Efficient Artificial Lift)
The Company is seeking early adopters and is confident that it will have an operator installing the REALTM system over the next few months in Canada after break-up is finished. The Company believes the REALTM system is ideal for Cardium, Montney and South-East Saskatchewan type reservoirs. The Company has engaged many operators and it has defined the install criteria and design for the REALTM to ensure "life of the well" options for these operators. Risk aversion and costs are significant factors in the delay getting this technology to commercialization in the Canadian landscape. ELS in the USA has also been in discussions with operators for installs in Texas and Oklahoma and the Company is confident that this market may be the lead in the deployment of the REALTM technology.
HARTTM (Horizontal Artificial Recovery Technology)
The Company has also been working diligently to define a partner for its HARTTM technology throughout the last year and believes it will be able to continue its pursuit of the "stranded reserves" in the coming year.
The Company is confident that it can secure a partner to re-commence commercialization testing of the HARTTM system within the next few months. All critical paths to the commercial product are identified and the Company will be ready with the new modified wellbore equipment within 6-7 months of project start to install into a Canadian wellbore.
New and Upcoming
The Company was showcased in the EnergyNow daily news in Canada and the USA on April 22, 2019.
Please use the link below to view the article on the Company's LinkedIn page:
The Company will also be updating its investor package and will have it available after the Q1 2019 report in early June 2019.
The Company is excited for the coming months and it looks forward to increasing its sales and customer base throughout North America and continuing to commercialize its other products.
The Company would like to thank all of its shareholders for their continued support and encouragement.
RESULTS OF OPERATIONS
Statements of Loss and Comprehensive Loss
|Revenue||$ 335,091||$ 333,824|
|Cost of sales||270,037||258,838|
|General and administration||1,960,083||1,576,892|
|Depreciation and amortization||91,634||100,703|
|Net loss and comprehensive loss||$(2,547,766)||$(2,017,644)|
|Net loss per share – basic and diluted||$ (0.02)||$ (0.02)|
About Raise Production Inc.
The Company is an innovative oilfield service company that focuses its efforts on the production service sector, utilizing its proprietary products to enhance and increase ultimate production in both conventional and unconventional oil and gas wells.
For further information please contact:
Tom Kehoe, Investor Relations
Eric Laing, President and Chief Executive Officer
Susan Scullion, Chief Financial Officer
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: www.raiseproduction.com
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 to obtain financing to provide working capital to fund operations, the availability of credit, the ability to commercialize products and operations, the potential to increase recoverable reserves for customers by utilization of the HARPTM, REALTM and HARTTM systems, estimates regarding current and projected cash resources and cash flow anticipated sales, 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; the availability of skilled labour, services and equipment, general economic and financial market conditions, the legislative and regulatory environment of the jurisdictions where the Company carries on business 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 current opinions, estimates, projections, assumptions 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. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statement will not occur. These risks and uncertainties include, but are not limited to: deployment and commercialization of the Company's products and regulatory changes. 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 performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44339