CALGARY, ALBERTA -- (Marketwired) -- 11/22/17 -- Raise Production Inc. (TSX VENTURE: RPC) ("Raise" or the "Company") has released its financial results for three and nine months ended September 30, 2017.
PRESIDENT'S UPDATE
The Company is pleased to provide an update to its shareholders on recent activities related to its operations.
High Angle Lift Solution ("HALS")
As previously discussed in our press release dated August 23, 2017, the HALS is a High Angle Lift Solution that can have certain downhole tools added, such as horizontal separation, sand control, recovery flow tubes and pack off assemblies for flow control. The added option of instrumentation allows the HALS to be utilized to evaluate the horizontal section while pumping and producing at optimal rates. The proprietary benefit that Raise provides to Exploration & Production companies ("E&P's") is optimized wellbore design that allows insight into flow conditions in the horizontal section of the wellbore.
In August 2017, the Company initiated "Open Houses" to introduce the HALS to potential customers. Two were held in the Company's shop in Calgary, Alberta, which was attended by a total of 65 industry representatives and resulted in a number of private showings to individual companies and followed by sales in the Cardium, Frobisher and Glauconitic zones in central and southern Alberta and SE Saskatchewan.
United States
In October 2017, the Company entered into an exclusive distribution agreement with Endurance Lift Solutions, LLC ("Endurance"). This was followed by an Open House at their main location in Midland, Texas, which was attended by 80 local company representatives. As a result of this Open House, the Company has just completed its first sale in South Texas and has a number of additional sales booked in the upcoming weeks. Raise and Endurance are also launching marketing and open houses in other U.S. locations in December 2017. The Company is excited about this partnership and believes it has a progressive and first class relationship with Endurance going forward into the future. For more information on Endurance, please go to www.endurancelift.com.
Horizontal Artificial Recovery Technology ("HART")
The Company has received five patents covering the United States, Australia, Russia, China and Canada for the system and method claims of its HART system. Five additional industrialized country patents are pending. These are important patent claims as they cover the area of any pump type run in multiples in a horizontal wellbore.
The Company has received a number of enquiries from international companies that are interested in purchasing its HALS. With installations of HALS, which provides additional wellbore information to E&P's, the Company expects HART sales to follow.
RESULTS OF OPERATIONS
Statements of Loss and Comprehensive Loss
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Three months ended Sept
30 Nine months ended Sept 30
2017 2016 2017 2016
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Revenue $ 25,946 $ 56,855 $ 118,466 $ 217,835
Cost of sales 11,850 53,734 101,033 166,597
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Gross margin 14,096 3,151 17,433 51,238
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Other income 3,529 2,998 20,522 13,523
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Expenses:
General and
administration 420,520 287,316 1,158,762 1,032,044
Depreciation and
amortization 22,625 34,757 77,024 104,222
Stock-based
compensation 37,320 26,110 61,292 76,362
Research expenses 46,496 52,041 46,496 80,852
Finance costs 1,586 3,573 6,586 12,687
Asset impairment - - - 5,867
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528,547 403,797 1,350,160 1,312,034
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Net loss and
comprehensive loss $ (510,922) $ (397,648) $ (1,312,205) $ (1,247,273)
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Net loss per share -
basic and diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01)
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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.
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 potential to increase recoverable reserves for customers by utilization of the HAL and HART systems, 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 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.
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
www.raiseproduction.com
