CALGARY, ALBERTA–(Marketwired – Oct. 27, 2015) – Raise Production Inc. (TSX VENTURE:RPC) (“Raise” or the “Company”) is pleased to announce it has completed its 2015 Annual General Meeting. At the meeting, the shareholders approved fixing the number of directors at six, re-elected the following to serve as board members until the next annual election of directors: Dr. Sherry Austin, Mr. Dell Chapman, Mr. Marvin Clifton, Mr. Rod Graham (Chairman), Mr. Ken Zinger and Mr. Eric Laing (President & CEO), and approved the appointment of Ernst & Young LLP, as the Company’s auditor for the ensuing year.
The Company wishes to advise shareholders that the Horizontal Wellbore Production System (the “System”) which was deployed over the summer was retrieved in early October. After disassembly and inspection of the pumps, reviewing operating results from the deployment and the fluids accumulated within the pumps, the Company believes that it has made significant progress toward validating its theories of horizontal flow.
The Company has inspected the replacement part, which had compromised previous deployments of the System, from all four pumps and is pleased to report that its condition was like new and showed no signs of wear or failure.
Inspection of the fluids contained in the pumps indicated a significant variation of both quantity and type of fluids across the four pumps arrayed along the lateral section. Importantly, the presence of material quantities of water within one of the pumps and a passive intake in the tubing section located toward the “toe” section of the wellbore may be illustrative of highly segmented flow in the horizontal section. The Company has also recovered sand “fines” within its intake filters located in the “toe” section of the well. These “fines” point toward draw down occurring in the localized area surrounding the pumps, again supporting the Company’s theories.
The Company is planning certain changes in System configuration in preparation for a re-deployment which is anticipated to occur late 2015 or early 2016. These changes include alterations in components of the activation System, the interface between the System and the vertical lift and pump placement along the horizontal section. These changes are designed to improve System activation speed, inflow and reservoir drawdown.
Given the noticeable presence of water experienced during the last deployment, the Company anticipates there is a material amount of frac fluid still resident in the “toe” section of the wellbore. As such, the Company is anticipating that “clean-up” of these fluids to take a number of months. During this “clean-up” period, the pressures required to move these fluids will result in slower System pump cycles and the Company believes this condition will progressively improve over time.
The Company is also pleased to inform shareholders that it is continuing the commercialization of its rod pump technologies. Toward this end, the Company has a technology development agreement with Cenovus Energy Inc. (the previously announced major heavy oil producer) that is moving forward beyond the feasibility stage. Specifically, the Company will deliver in November 2015 a 2.5 inch rod pump that includes three of its proprietary valves designed to support rod pumps landed at high deviation angles. Design continues on a 4.5 inch version of this pump for deployment early in 2016.
A copy of the presentation materials used during the informal portion of the Annual General Meeting is available on the Company’s website at www.raiseproduction.com.
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 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. These forward-looking statements include, among other things, the suitability of the System for the stated purposes; System deployment and rod pump development and deployment; and the availability of resources to dedicate to finalizing design and function testing of rod pumps.
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 within predicted timelines or at all, 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 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: the possibility that testing, deployment and commercialization of the System may not be successfully completed for any reason (including the failure to obtain the required approvals from regulatory authorities) 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.
Raise Production Inc.
President and Chief Executive Officer
Raise Production Inc.
Chief Financial Officer
Raise Production Inc.
VP, Business Development
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5