Acceleware’s Patent-Pending RF Heating Tech Remains Priority
Acceleware Ltd. continued to make progress in developing its patented and patent-pending RF XL heating technology in the second quarter of 2019.
The radio frequency heating from technology is designed to improve the extraction of heavy oil and bitumen, and has the potential to save billions of dollars in oilsands production costs.
Although the application for approval to conduct the RF XL pilot at Prosper Petroleum Ltd.’s Rigel oilsands property near Fort McKay in northeast Alberta has been submitted to the Alberta Energy Regulator (AER), approval of the project has been delayed. In response, management is pursuing several alternatives designed to provide a back-up plan, including, among other things, investigating different sites that could be used to conduct the commercial-scale test.
Initiating the commercial-scale RF XL pilot remains a priority throughout the latter half of 2019, including the identification of viable options that could be pursued should the AER application be further delayed.
Total costs to complete the RF XL pilot are estimated to range between $16 million and $20 million with over $16 million raised to date for the commercial-scale test.
In the second quarter of 2019, the oilsands tech company advanced plans for the commercial-scale RF XL field test in northeast Alberta, made significant progress on an additional five patent applications, and further invested in research and development for the RF XL technology.
The company completed factory acceptance testing of a prototype RF generator with partner GE, conducted additional bench-top testing of RF XL components with various oilsands core samples, completed various mechanical and electrical de-risking activities, and continued to refine proprietary RF XL components with key suppliers.
Revenue in the quarter was $213,475 attributable largely to the company’s HPC business segment compared to $350,098 in Q2 2018.
Acceleware incurred a total comprehensive loss of $443,145 in the second quarter, improving on a $645,911 loss in Q2 2018 primarily due to higher government R&D funding assistance for RF heating development.
Acceleware began selling seismic software directly to oil and gas customers while leveraging innovative new licensing models after discontinuing its HPC software reseller model in Q1 2019. The direct-sale approach is expected to result in fewer individual software licence sales but higher revenue per sale, which may lead to greater volatility in revenue from quarter-to-quarter.
In the fall of 2019, the company expects to launch a new corporate website and social media programs designed to further build Acceleware’s potential customer base, attract new investors and optimally engage with other stakeholders.