News Column

Raise Production Inc. Announces First Quarter 2014 Financial Results and Operations Update

May 28, 2014

CALGARY, May 28, 2014 /CNW/ - Raise Production Inc. (TSX-V: RPC) ("Raise" or the "Company") has released its financial results for the three months ended March 31, 2014.

PRESIDENT'S UPDATE

The Company is pleased to update shareholders on its activities and on the progress of the Horizontal Wellbore Production System (the "System").

The Company recommenced testing of the System at our industry partner site on May 15, 2014. The System was restarted with no issues, after being shut down for six weeks due to spring break up, and is operating within design parameters. On a day to day basis, well productivity has been variable which the Company believes is an expected condition as the wellbore "cleans up". We will continue to make operating adjustments in order to optimize the System performance. The existing deployment is in a low productivity wellbore that has transitioned well past its flush rates of production. Short term changes in flow rates can not be extrapolated as applicable in other wells, reservoirs or earlier stages of production. We remind investor's that the System is still in the testing phase and we will only be releasing production results once approval from our industry partner has been received.

As we continue to monitor results and gain understanding of the effect of the System on the wellbore and flow characteristics we are in a better position to select the best wells for deployment. To this end, the Company is in negotiations with a new partner for the deployment of an additional System into another area of the Viking reservoir. We anticipate completing this installation in late June, depending on availability of third party equipment and our customer's approval. This deployment is again in a Viking formation with a wellbore that has declined significantly from its initial production rates. However, unlike our existing test well, this candidate had exhibited higher production on a consistent and stabilized basis.

Although significant progress has been made, there is still some important work to be done to have this System and subsequent iterations become commercial over a wide range of horizontal wellbores.

Looking forward, the Company has two significant strategic initiatives currently underway. First, continuous development is occurring within our Research & Development group to expand and improve critical features of the System to meet other more demanding applications such as deeper and higher volume wells.  Second, strategic planning for commercial operations is well underway.  The Company will continue to recruit additional staff to increase manufacturing capacity and seek new avenues for supply of material and finished products to be ready for commercial deliveries. Both of these processes take considerable time and effort and need to proceed in a systematic, but aggressive fashion.


RESULTS OF OPERATIONS
Statement of Operations (Unaudited)
     
  2014  2013
     
Revenue     $   80,762   $       13,177
     
Cost of sales     52,092   16,898
Gross margin (loss)    28,670   (3,721)
     
Expenses:    
   General and administration     375,336   466,959
   Depreciation and amortization     40,060   37,721
   Stock-based compensation     13,234   174,010
   Finance costs    8,465   3,586
   Research expenses     342,300
   437,095   1,024,576
     
Net loss and comprehensive loss  $ (408,425) $  (1,028,297)
     
Net loss per share - basic and diluted              $ (0.00) $         (0.02)



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.

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.


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