Raise Production Inc.
TSX VENTURE : RPC

Raise Production Inc.

August 23, 2016 17:58 ET

Raise Production Inc. Announces Second Quarter 2016 Financial Results and Operations Update

CALGARY, ALBERTA--(Marketwired - Aug. 23, 2016) - Raise Production Inc. (TSX VENTURE:RPC) ("Raise" or the "Company") has released its financial results for the three and six months ended June 30, 2016.

PRESIDENT'S UPDATE

The Company is pleased to provide shareholders an update on its Horizontal Wellbore Production System (the "System"), its rod pump technology and a staff change.

As reported in the Company's last press release dated July 27, 2016, the Company's last deployment of the System was successful in a number of ways and the Company believes the System is robust enough to target substantially higher production wells. The System has now been retrieved from the test partner wellbore. The System retrieval was performed without incident and upon initial inspection all components were found to be in excellent condition. The Company will now perform a complete analysis of the System including post well production for comparative purposes. Once this process is complete, the Company will continue to formulate the required System modifications for the next deployment.

With respect to the Company's initiative in reciprocating pumps, the Company continues to actively pursue a field deployment for its large bore pump prototype. Raise remains optimistic it will secure such an opportunity and will provide future updates as this initiative develops.

The Company also wishes to announce that Mr. Scott Riddell, VP Business Development, has decided to pursue a post-graduate educational opportunity, thus will be moving into a consulting role with the Company effective immediately. Mr. Riddell will continue to provide advice with regard to strategy and business development on an as-needed basis.

RESULTS OF OPERATIONS

Statement of Operations (Unaudited)

Three months ended
June 30
Six months ended
June 30
2016 2015 2016 2015
Revenue $ 105,300 $ 30,409 $ 160,950 $ 52,409
Cost of sales 74,392 22,419 112,863 32,363
Gross margin 30,908 7,990 48,087 20,046
Interest income 4,562 10,796 10,525 18,643
Three months ended
June 30
Six months ended
June 30
2016 2015 2016 2015
Expenses:
General and administration 382,902 409,568 744,728 791,668
Depreciation and amortization 35,000 34,546 69,464 70,978
Stock-based compensation 21,809 46,692 50,253 87,014
Research expenses 28,812 - 28,812 -
Finance costs 4,130 6,017 9,113 13,114
Fixed asset impairment 5,867 - 5,867 -
478,520 496,823 908,237 962,774
Net loss and comprehensive loss $ (443,050 ) $ (478,037 ) $ (849,625 ) $ (924,085 )
Net loss per share - basic and diluted $ (0.00 ) $ (0.01 ) $ (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.

These forward-looking statements include, among other things, the suitability of the System for the stated purposes; the availability of the optional supplier if quantities exceed the capability of the first manufacturer, or there is an unforeseen development which necessitates a change of supplier; the success and timing of the finalization of part qualification, System deployment and rod pump deployment; and the availability of resources to dedicate to finalizing design and function testing of rod pumps.

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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