CALGARY, ALBERTA -- (Marketwired) -- 04/07/16 -- Raise Production Inc. (TSX VENTURE: RPC) ("Raise" or the "Company") is pleased to provide an update to its shareholders with respect to certain technology development initiatives.
As previously announced, the Company has been developing a proprietary rod pump technology under a technology development agreement with Cenovus Energy Inc. ("Cenovus"). The technologies involve large bore rod pumps for use in heavy oil operations utilizing unique valve, seal and mechanical designs in development by Raise. Cenovus has advised the Company that, consistent with other budgetary restrictions, it is suspending the development agreement at this time. The Company believes the continuing protracted weak commodity price environment is the reason for the suspension and that this development is not a statement about the potential for the rod pump technology.
The Company believes the rod pump technology has many potential advantages compared to electrical submersible pumps when used in certain thermal heavy oil wells. Raise views the commercialization of the large bore technology as one of its key priorities. The rod pump technology still requires a component of research and development and the Company will continue design and in-house testing with a view to making a field deployment later this year. At Cenovus's request, Raise is maintaining communication with them, with a view to obtaining a test well in which to deploy the prototype pump when it is ready. Moreover, the Company has initiated discussions with one other significant oil producer toward securing a test well and is planning to engage other potential customers in the coming weeks.
Regarding the testing of Raise's Horizontal Wellbore Production System (the "System"), field trials are now underway. The Company experienced a protracted commissioning period during February and March involving adapting the custom designed surface control unit, and has only recently established consistent run time on the unit. The surface unit is a unique system, consisting of various types of equipment which required in-field operations in order to coordinate their integrated operation. Testing of the System is currently ongoing and the Company believes pumping in the horizontal portion of the wellbore has begun the process of "clean-up" and mobilizing fluids that are believed to be latent in the toe section of the wellbore.
Raise wishes to thank its employees, test partners and shareholders for their continued support in developing these exciting products.
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. 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
(403) 699-7675
elaing@raiseproduction.com
Raise Production Inc.
Scott Riddell
VP, Business Development
(403) 699-7675
sriddell@raiseproduction.com
www.raiseproduction.com
