Raise Production Inc.
TSX VENTURE : RPC

Raise Production Inc.

August 31, 2015 18:01 ET

Raise Production Inc. Announces Second Quarter 2015 Financial Results and Operations Update

CALGARY, ALBERTA--(Marketwired - Aug. 31, 2015) - Raise Production Inc. (TSX VENTURE:RPC) ("Raise" or the "Company") has released its financial results for the three and six months ended June 30, 2015.

PRESIDENT'S UPDATE

The Company is pleased to update its shareholders on its financial results and activities during the second quarter of the year.

As stated in our press release dated August 26, 2015, the Company will continue to test its Horizontal Wellbore Production System (the "System") with the assistance of its test partner once the activation system has been addressed and improved. The last ninety day test has been the first opportunity the Company has had to run the System for extended periods and through this test, has gained the assurance that the System is mechanically sound.

In parallel to the test of the System, the Company was in discussions with a major heavy oil producer regarding a technology development for its rod pumping solution that was developed for use with the System. We are pleased to announce that Raise has been awarded an engineering contract to develop a large bore rod pump for use in heavy oil applications. The contract is based on certain go/no-go decision points. The Company has completed the feasibility study and is now embarking on the conceptual design phase. This contract has allowed us to expand our design team to work exclusively on this project and in no way impacts our resources dedicated to the System.

Raise is also pleased and very proud to announce that the Company has been granted and received the Canadian patent for its horizontal pumping System. The patent grant now legally protects the intellectual property for a number of method claims for the System. It also validated the uniqueness of the System and the process of producing horizontal wellbores with multiple pumps. The patent also brings credible value to shareholders as an asset once the System has proven the theory.

Raise would like to thank our staff for their efforts and desire to succeed, our shareholders for their support and patience and our industry partners for their continued interest and participation in our initiatives to develop a unique and needed technology.

RESULTS OF OPERATIONS

Statement of Operations (Unaudited)

Three months ended June 30 Six months ended June 30
2015 2014 2015 2014
Revenue $ 30,409 $ 1,389 $ 52,409 $ 64,051
Cost of sales 22,419 - 32,363 52,092
Gross margin 7,990 1,389 20,046 11,959
Interest income 10,796 17,883 18,643 35,984
Expenses:
General and administration 409,568 354,945 791,668 731,417
Stock-based compensation 46,692 12,929 87,014 26,163
Depreciation and amortization 34,546 40,998 70,978 81,058
Finance costs 6,017 7,931 13,114 16,396
Inventory impairment reversal - (30,000 ) - (31,135 )
496,823 386,803 962,774 823,899
Net loss and comprehensive loss $ (478,037 ) $ (367,531 ) $ (924,085 ) $ (775,956 )
Net loss per share - basic and diluted $ (0.01 ) $ (0.00 ) $ (0.01 ) $ (0.01 )

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. 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.

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