CALGARY,
March 26, 2013 /CNW/ - Raise
Production Inc. (TSXV: RPC) ("Raise" or the "Company") is pleased
to provide this update to its shareholders regarding its business
development and outlook.
Raise's engineering group has continued its
research & development initiatives on its unique horizontal
wellbore production system (the "System"). Considerable
accelerated life testing has been completed on key components,
design and configuration issues associated with bench testing are
being overcome and the Company is currently engaged in
manufacturing and assembly of its first proto-type System for
deployment in a shallow light oil reservoir. After detailed
analysis of various reservoirs, Raise has targeted the Viking
formation in Saskatchewan and
Alberta as the zone for initial
System deployment.
In its third quarter report for 2012, Raise
stated it was planning to field test the System in the first
quarter of 2013, but such testing was contingent on securing an
industry partner. Raise has ongoing discussions with various
oil & gas industry participants, with a view to securing an
initial test well for System deployment, but due to commercial and
logistical issues the Company will not be able to install a System
prior to the end of this quarter. Raise is targeting to
conclude an agreement with a partner and make its first
installation in the second quarter of this year.
In the third quarter report of 2012, Raise
announced it had made the strategic decision to commit its full
efforts toward the development of the System. Consistent with
this, the Company is pleased to announce it has entered into an
agreement with CJS Production Technologies Inc. ("CJS") to allow
CJS exclusive distributorship rights to Raise's patented Activator
Downhole Hydraulic Submersible Piston Pump ("HSP"). The
agreement is for an initial five year term with renewal
provisions. CJS has agreed to purchase Raise's existing HSP
inventory on a staged basis beginning in July of 2013 and ending in
July 2014 and thereafter Raise will
earn a royalty on each HSP unit sold by CJS.
Eric Laing,
President and Chief Executive Officer of Raise, commenting on the
progress of the business said, "I'm exceptionally proud that the
Raise team has moved us so far in such a short time toward a
working proto-type of our horizontal production system
technology. As with any R&D project there are ups and
downs in technology development, but I am very impressed that in a
little over a year we have gone from conceptual system drawings,
through patent application and to now approach a product ready to
put in the ground. We are excited to go to the field after
spring break-up and feel this technology can change the way
industry manages its horizontal wellbores. I look forward to
commercialization of this System initially for the Viking and later
this year after successful deployment of the proto-type proceeding
with the continued expansion of the technology to fit deeper more
prolific reservoirs."
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.
This news release contains certain forward-looking
statements. All statements, other than statements of
historical fact, are forward looking statements that involve
various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from these anticipated in
such statements.
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.
SOURCE Raise Production Inc.