Exploration & Production | Service & Supply | Oilfield Services

Raise Production Testing HZ Wellbore Production System

Share Print Bookmark    |    Thursday,May 29,2014

Raise Production Inc. 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 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.