Raise Production Inc. has announced it has completed its 2015 Annual General Meeting. At the meeting, the shareholders approved fixing the number of directors at six, re-elected the following to serve as board members until the next annual election of directors: Dr. Sherry Austin, Mr. Dell Chapman, Mr. Marvin Clifton, Mr. Rod Graham (Chairman), Mr. Ken Zinger and Mr. Eric Laing (President & CEO), and approved the appointment of Ernst & Young LLP, as the company's auditor for the ensuing year.
The company has announced that the Horizontal Wellbore Production System (the System), which was deployed over the summer, was retrieved in early October. After disassembly and inspection of the pumps, reviewing operating results from the deployment and the fluids accumulated within the pumps, the Company believes that it has made significant progress toward validating its theories of horizontal flow.
The company has inspected the replacement part, which had compromised previous deployments of the System, from all four pumps and is pleased to report that its condition was like new and showed no signs of wear or failure.
Inspection of the fluids contained in the pumps indicated a significant variation of both quantity and type of fluids across the four pumps arrayed along the lateral section. Importantly, the presence of material quantities of water within one of the pumps and a passive intake in the tubing section located toward the "toe" section of the wellbore may be illustrative of highly segmented flow in the horizontal section. The company has also recovered sand "fines" within its intake filters located in the "toe" section of the well. These "fines" point toward draw down occurring in the localized area surrounding the pumps, again supporting the Company's theories.
The company is planning certain changes in System configuration in preparation for a re-deployment, which is anticipated to occur late 2015 or early 2016. These changes include alterations in components of the activation System, the interface between the System and the vertical lift and pump placement along the horizontal section. These changes are designed to improve System activation speed, inflow and reservoir drawdown.
Given the noticeable presence of water experienced during the last deployment, the company anticipates there is a material amount of frac fluid still resident in the "toe" section of the wellbore. As such, the company is anticipating that "clean-up" of these fluids to take a number of months. During this "clean-up" period, the pressures required to move these fluids will result in slower System pump cycles and the company believes this condition will progressively improve over time.
The company is also pleased to inform shareholders that it is continuing the commercialisation of its rod pump technologies. Toward this end, the company has a technology development agreement with Cenovus Energy Inc. (the previously announced major heavy oil producer) that is moving forward beyond the feasibility stage. Specifically, the company will deliver in November 2015 a 2.5 inch rod pump that includes three of its proprietary valves designed to support rod pumps landed at high deviation angles. Design continues on a 4.5 in. version of this pump for deployment early in 2016.
Edited from press release by Angharad Lock
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