RE: 6 days into field test. The radio frequency heating should9 Aug 2019 15:07
taken from Acceleware's last RNS
RF XL is Acceleware's patented and patent-pending RF heating technology, designed to improve the extraction of heavy oil and bitumen, and has the potential to save billions of dollars in oil sands production costs. When applied, the technology is designed to reduce both capital and operating costs, while offering significant environmental benefits, including immediate greenhouse gas ("GHG") emission reductions, a substantial decrease in land use, the elimination of external water or solvent needs and no requirement for tailings ponds. 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 and provide optimal alignment with government goals to recognize innovation as part of the solution in Canada's overall emission reduction plans.
Acceleware's RF heating segment represents a key driver of future growth, and the Company successfully ramped up investment in R&D within this segment through Q1 2019. Key activities during the period are outlined below and include engineering, design and prototyping work related to the Company's planned commercial-scale test of RF XL, and filing of additional patent applications.
The Company continued to receive milestone payments during Q1 2019 under the recently completed contribution agreements with Sustainable Development Technology Canada ("SDTC") and Emissions Reduction Alberta ("ERA"). The agreements will provide a total of $10 million in non-repayable grants, and as at March 31, 2019, Acceleware had received a combined $1,157,843 from both SDTC and ERA. This capital infusion enabled the Company to accelerate progress of the commercial-scale pilot project to be completed with Prosper Petroleum Ltd. at its Rigel property in northeast Alberta;
The Company completed additional factory acceptance testing of a prototype RF generator with partner GE;
Acceleware conducted bench-top testing of the RF XL apparatus with various oil sands core samples;
Engineers and consultants continued to de-risk design concepts for RF XL wells; and
Acceleware's scientists and engineers filed three new patent applications.
Acceleware continues to estimate that the cost to complete the RF XL pilot will range from $16 million to $20 million. Through a project funding agreement with a major oil sands producer, contribution agreements with SDTC and ERA, and other sources, the total financing raised to date for the commercial-scale test is in excess of $16 million. Acceleware has also appointed GMP Securities L.P. ("GMP FirstEnergy") as exclusive financial advisor to assist in the full funding of the RF XL pilot program.
RF heating revenue rose slightly in Q1 2019 to $2,225 from $nil in Q1 2018 on increased maintenance revenue. RF heating revenue was 95% lower in Q1 2018 compared to the $42,484 recorded in Q4 2018 on lower software revenue.
A loss from operations in Q1 2019 attributable to th
Sign In
Follow the stocks
