CALGARY, Alberta / ACCESSWIRE / August 27, 2014 / Raise Production Inc. (TSX-V: RPC) ("Raise" or the "Company") has released its financial results for the three and six months ended June 30, 2014.
PRESIDENT'S UPDATE
We would like to take this opportunity to update shareholders on our activity since our last press release on August 14, 2014. At that time, we had indicated an issue with a third party component used in the Horizontal Wellbore Production System (the "System") and were actively pursuing alternate vendors to provide the component part.
We have now identified three potential suppliers of the component and one vendor is currently in the process of manufacturing and providing a replacement. We anticipate receiving a supply of these parts at our facility within two weeks at which time we will commence full range testing including destructive testing of the components to qualify them as suitable. These new components have a different manufacturing process and will be rigorously tested for material and function. While waiting for these components to arrive the Company has begun fabricating new test equipment to ensure these parts are all individually tested and passed before entering into an order that will allow the Company to re-deploy the System into the same wellbore we deployed in during this summer.
It is our intention to have the System ready to deploy early in the fourth quarter of 2014. While this has been a frustrating situation, we consider this to be a normal part of bringing a new technology to commercial success. These components are new and not "off the shelf". Like the many obstacles we have encountered throughout the process of developing this (and any other) new technology, we are certain we will overcome this one.
We must remember that the Company has reached significant milestones to date, namely deployment into the wellbore, the ability to retrieve the System without issues, the ability to activate the System and the design and manufacture of a better vertical lift solution (which has its own patent and commercial opportunities). Shareholders should also take note that the Company has the financial resources to continue on with our original plan to commercialize the System as stated in our prior press release.
We would also take this opportunity to thank our test partners for their patience and confidence in the Company to provide a reliable working system for their wellbores. We would also like to thank our shareholders for the support we have received as we get over this "speed bump".
RESULTS OF OPERATIONS
Statement of Operations (Unaudited)
----------------------------------------------------------------------------------------------------------------------------- | |Three | Six months ended June 30 | | |months | | | |ended | | | |June | | | |30 | | |---------------------------------------------------------------------------------------------------------------------------| | | | | 2014 |2013 | | | 2014 | 2013 | | | |---------------------------------------------------------------------------------------------------------------------------| |Revenue |$ 19,272 |$ 105,641 |$ 100,035 |$ 118,818 | |---------------------------------------------------------------------------------------------------------------------------| |Cost of sales | | 2,669 | | 19,567 | | | – | |52,092 | | |---------------------------------------------------------------------------------------------------------------------------| |Gross margin | 19,272 | 102,972| | 99,251 | | | | | 47,943 | | |---------------------------------------------------------------------------------------------------------------------------| | | | | | | |---------------------------------------------------------------------------------------------------------------------------| |Expenses: | | | | | |---------------------------------------------------------------------------------------------------------------------------| | General and administration | 362,876 | 314,176| | 783,237 | | Depreciation and amortization | | | 747,813 | | | Inventory impairment (reversal) | | | | | | Stock-based compensation | | | | | | Research expenses | | | | | | |----------------------------------------------------| | | 40,998 | | | 80,591 | | | | 42,870 | 81,058 | | | |----------------------------------------------------| | | (30,000) | | | | | | | (801) | (31,135) |683 | | |----------------------------------------------------| | | 12,929 | | | 324,761 | | | |150,751 | 26,163 | | | |----------------------------------------------------| | | | | | 342,300 | | | – | | | | | | | | | | | | | – | – | | |---------------------------------------------------------------------------------------------------------------------------| | | 386,803| | | | | | |506,996 | 823,899 | 1,531,572 | |---------------------------------------------------------------------------------------------------------------------------| |Net loss and comprehensive loss |$ (367,531)|$ (404,024)|$ (775,956) |$ | | | | | |(1,432,321) | |---------------------------------------------------------------------------------------------------------------------------| | | | | | | |---------------------------------------------------------------------------------------------------------------------------| |Net loss per share– basic and diluted |$ |$ |$ |$ | | | (0.00) |(0.01) |(0.01) | | | | | | |(0.03) | -----------------------------------------------------------------------------------------------------------------------------
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 patented products to enhance and increase ultimate production in both conventional and unconventional horizontal oil and gas wells.
For further information please contact:
Eric Laing, President and Chief Executive Officer
E-mail: [email protected]
Susan Scullion, Chief Financial Officer
E-mail: [email protected]
Scott Riddell, VP, Business Development
E-mail: [email protected]
Raise Production Inc.
2620-58th Avenue S.E.
Calgary, Alberta T2C 1G5
Tel: (403) 699-7675
Web site at: www.raiseproduction.com
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, 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 opinions 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. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. 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 outcomes.
SOURCE: Raise Production Inc.