- Shares in Acceleware (TSXV:AXE) have jumped 112.5 per cent following a partnership deal with Broadview Energy
- The deal relates to a commercial-scale pilot program of Acceleware’s RF XL technology
- RF XL, a Radio Frequency Heating technology, is designed to improve the extraction of heavy oil and bitumen and reduce production costs
- Under the agreement, Acceleware will farm-in to Broadview’s Marwayne asset and add Broadview as a consortium partner
- The agreement also contemplates future purchases of the RF XL technology by Broadview
- Acceleware (AXE) is up 112.5 per cent and is trading at C$0.17 per share, with a market cap of $17.94 million
Shares in Acceleware (TSXV:AXE) have jumped 112.5 per cent following a partnership deal with Broadview Energy.
The agreement relates to a commercial-scale pilot program of Acceleware’s RF XL clean technology.
RF XL, a Radio Frequency Heating technology, is designed to improve the extraction of heavy oil and bitumen.
Once implemented, RF XL has the potential to reduce both capital and operating costs, while providing significant environmental benefits.
These environmental benefits include immediate GHG emission reductions, a profound decrease in land use, the elimination of solvents and external water use, and no need for water treatment facilities or tailings ponds.
Under the terms of the agreement, Acceleware will farm-in to Broadview’s Marwayne, located near Lloydminster in the Cold Lake Oil Sands region. The deal also contemplates the terms for future purchases of the RF XL technology by Broadview.
In addition, Acceleware will receive ownership and economic benefits of all petroleum products produced in both the first and second test phases. However, this is subject to a gross overriding royalty of up to 7.5 per cent, payable to Broadview.
Geoff Clark, CEO of Acceleware, said that the pilot program will benefit from Broadview’s experience and agility.
“The extensive engineering and de-risking work that we have completed over the past two years will be instrumental in validating the performance and potential of our RF XL clean technology.
“We greatly appreciate the continued support of our funding partners, SDTC and ERA, as we continue to advance commercialization of this clean-tech innovation,” he said.
Acceleware had previously entered into a similar agreement with Prosper Petroleum, but delays in securing regulatory approval for the project resulted in the termination of the deal earlier this week.
While approval is still required for the partnership with Broadview, Acceleware is currently working with its supply partners to update the budget and schedule for the project.
According to current estimates, the budget is expected to be between C$16 and $20 million, of which roughly $16 million has already been raised.
Acceleware (AXE) is up 112.5 per cent and is trading at $0.17 per share at 2:50pm EDT.
