CALGARY, ALBERTA -- (Marketwired) -- 05/25/16 -- Raise Production Inc. (TSX VENTURE: RPC) ("Raise" or the "Company") has released its financial results for the three months ended March 31, 2016.
PRESIDENT'S UPDATE
The Company is pleased to provide shareholders with an updated report on current activities regarding its Horizontal Wellbore Production System (the "System") and its rod pump technology.
The System continues to work well in the field with no issues on either the downhole or surface equipment. Any interruptions to the System operation have been for regular maintenance associated with normal operating conditions. The Company continues to expand its learnings on how the System interacts with normal operations of well production. We continue to explore various methods and techniques to improve historical production decline and rates. We foresee this continuing for an extended period of time. The learnings from this operation is a cornerstone for future installs in terms of determining candidate wells and optimal configurations. The current installation has also allowed significant insight into well preparation, completion design, surface control design and required operating power. Future components and manufacturing will benefit greatly from this final test installation.
With respect to the Company's new initiative in reciprocating pumps, the large bore pump is now in the final design stage and test facilities have been built. The pump is being developed to compete in the high temperature, high volume conventional and thermal market segment. The large bore pump is unique in a number of aspects that we believe will enhance and create new markets for the reciprocating pump segment of the industry. The Company continues to discuss this new pump with significant oil producers to secure a test well in order to deploy the prototype pump when it is ready.
The Company would like to thank all of its stakeholders for their patience and support as we enter the final stages of tests for the horizontal System and look forward to expanding into a new large bore pump market.
RESULTS OF OPERATIONS
Statement of Operations (Unaudited)
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Three Months ended
March 31
2016 2015
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Revenue $ 55,650 $ 22,000
Cost of sales 38,471 9,944
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Gross margin 17,179 12,056
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Interest Income 5,964 7,848
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Expenses:
General and administration 361,828 382,100
Depreciation and amortization 34,464 36,432
Stock-based compensation 28,443 40,323
Finance costs 4,983 7,097
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429,718 465,952
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Net loss and comprehensive loss $ (406,575) $ (446,048)
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Net loss per share - basic and diluted $ (0.00) $ (0.01)
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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
(403) 699-7675
elaing@raiseproduction.com
Raise Production Inc.
Susan Scullion
Chief Financial Officer
(403) 699-7675
sscullion@raiseproduction.com
Raise Production Inc.
Scott Riddell
VP, Business Development
(403) 699-7675
sriddell@raiseproduction.com
www.raiseproduction.com
