CALGARY, ALBERTA -- (Marketwired) -- 05/27/15 -- Raise Production Inc. (TSX VENTURE: RPC) ("Raise" or the "Company") has released its financial results for the three months ended March 31, 2015.
PRESIDENT'S UPDATE
The Company is pleased to update its shareholders on recent activities and progress in commercializing the Horizontal Wellbore System (the "System").
As stated in our last press release, dated April 27, 2015, regarding testing of replacements for the malfunctioning part, we are pleased to report that tests in our facilities continue to be positive and both replacements are functioning as required with no issues recorded to date. The accelerated test protocol has shown significant resiliency of the replacement part.
Based on the results of the testing, we are pleased to inform shareholders that we will be deploying a System with the replacement part into our test partner's wellbore within the next few days. Once the System is deployed, we will conduct function testing of all parts and the complete System. Following successful start up, the System will be engaged and the well will be placed back on production initiating a period where System operation and production output is monitored. The Company will not release production volumes until the well has stabilized, load fluid is recovered and the System is operating under normal conditions.
The Company also closed a non-brokered private placement of 2,500,000 common shares at a price of $1.20 per common share for total proceeds of $3,000,000 on April 29, 2015, which the Company projects will fund its capital and operating expenditures into late 2016 based on current forecasts.
Eric Laing, President and CEO, commented "we are very excited to be going back into the ground with the System. It has been a challenging process to source and find the replacement part and we are looking forward to testing it in a working environment. We have done as much testing as possible in the shop and it is time for the real test. I would like to express my gratitude to our employees who have worked very hard to get us back to this point and our shareholders for their strong support".
RESULTS OF OPERATIONS
Statement of Operations (Unaudited)
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Three Months ended March 31
2015 2014
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Revenue $ 22,000 $ 62,661
Cost of sales 9,944 52,092
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Gross margin 12,056 10,569
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Interest Income 7,848 18,101
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Expenses:
General and administration 382,100 375,336
Stock-based compensation 40,323 13,234
Depreciation and amortization 36,432 40,060
Finance costs 7,097 8,465
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465,952 437,095
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Net loss and comprehensive loss $ (446,048) $ (408,425)
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Net loss per share - basic and diluted $ (0.01) $ (0.00)
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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 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; the availability of the optional supplier if quantities exceed the capability of the first manufacturer, or there is an unforeseen development which necessitates a change of supplier; the success and timing of the finalization of part qualification, System deployment and rod pump 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.
Contacts:
Raise Production Inc.
Eric Laing
President and Chief Executive Officer
elaing@raiseproduction.com
Raise Production Inc.
Susan Scullion
Chief Financial Officer
sscullion@raiseproduction.com
Raise Production Inc.
Scott Riddell
VP, Business Development
sriddell@raiseproduction.com
Raise Production Inc.
(403) 699-7675
www.raiseproduction.com
