CALGARY, Nov. 13, 2018 /CNW/ – Acceleware Ltd. (TSX-V: AXE) (“Acceleware” or the “Company”) is very pleased to announce the participation of a major Calgary-based oil sands producer (the “Producer”) in the commercial-scale RF XL pilot test of its radio frequency heating system. The Producer will provide funding of up to $2 million toward the RF XL pilot under the terms of a project funding agreement with Acceleware. In exchange for the funding, the Producer will be able to provide input into pilot designs and test specifications prior to completion, and will receive, along with the other pilot participants, exclusive access to the full set of detailed technical data and test results for one year following completion of the pilot. Acceleware has granted the Producer prioritized rights to host a subsequent test of Acceleware’s RF XL technology, preferred pricing on pre-commercial products, and preferred access to RF XL products over operators who do not participate in the pilot.
“Securing $2 million in financial support plus certain technical input from a major oil sands operator is a substantial advancement in our commercialization efforts for RF XL.” said Geoff Clark, CEO of Acceleware. “We are excited to have secured investment from an industry leader who is interested in our work to further develop and prove this technology.”
“Acceleware believes that RF XL technology can radically improve the economic and environmental performance of heavy oil and oil sands production, and will be a critical tool in the profitable and responsible development of the oil sands,” added Mike Tourigny, VP Commercialization RF Heating.
As announced on July 17, 2018, the test will be completed at Prosper Petroleum Ltd.’s Rigel property in the Athabasca Oil Sands. Acceleware estimates the cost to complete the RF pilot will range from $16 to $20 million. The $2 million in financial support from the Producer together with $10 million in non-repayable funding from Sustainable Development Technology Canada and Emissions Reduction Alberta and other funds, brings the total non-dilutive capital financing raised to date to an excess of $15 million.
Acceleware has been advancing the development of its proprietary and patented RF XL technology since 2010. The Company believes RF XL has the potential to save billions in oil sands production costs by reducing both capital and operating costs, while offering significant environmental benefits, including immediate greenhouse gas (GHG) emission reductions, a substantial decrease in land use, no requirement for external water or solvents and no tailings ponds. It also has the potential to be re-deployable from location to location and adapted to a multitude of reservoir types. As an electrically driven process, Acceleware also believes that RF XL technology can provide a clear pathway to zero-GHG production of heavy oil and oil sands.
Acceleware has appointed GMP Securities L.P. (“GMP FirstEnergy”) as exclusive financial advisor to assist in the full funding of the RF XL pilot program. GMP FirstEnergy provided advice on the completion of the project funding agreement.
Acceleware (www.acceleware.com) is an innovator of clean-tech oil and gas technologies comprised of two business units: Radio Frequency (RF) Enhanced Oil Recovery and Seismic Imaging Software.
Acceleware is developing RF XL and Modular RF, its patented and patent-pending low-cost, low-carbon production technologies for heavy oil and oil sands that are materially different from any heavy oil recovery technique used today. They will use no water, require no solvent, have a small physical footprint, can be redeployed from site to site, and can be adapted to a multitude of reservoir types, while expected to greatly reduce and eventually eliminate production greenhouse gas emissions (GHGs). In shallow oil sands implementations, no tailings ponds will be required.
Our seismic imaging software solutions are state of the art for high fidelity imaging, providing the most accurate and advanced imaging available for oil exploration in complex geologies. Acceleware is a public company on Canada’s TSX Venture Exchange under the trading symbol “AXE”.
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally means information about an issuer’s business, capital, or operations that are prospective in nature, and includes disclosure about the issuer’s prospective financial performance or financial position.
The forward-looking information in this press release can be identified by terms such as “anticipates”, “believes” “potential”, “would” and “will”, and includes information about the timeline of the commercial-scale test of RF XL, the expectations for future intellectual property development and the commercial availability of RF XL technology, as well as the anticipated benefits of that technology, and the likelihood of Acceleware raising additional financing. Acceleware assumes that the current timeline for the RF XL pilot is achievable, that research and development effort including the commercial-scale test plans will result in commercial-ready products, and that future capital raising efforts will be successful.
Actual results may vary from the forward-looking information in this press release due to certain material risk factors. These risk factors are described in detail in Acceleware’s continuous disclosure documents, which are filed on SEDAR at www.sedar.com.
Acceleware assumes no obligation to update or revise the forward-looking information in this press release, unless it is required to do so under Canadian securities legislation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this release in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE Acceleware Ltd.
View original content: http://www.newswire.ca/en/releases/archive/November2018/13/c2764.html