AXE Acceleware Ltd

Acceleware Ltd. (“Acceleware” or the “Company”) (TSXV: AXE), a Canadian clean-tech innovator of radio frequency (RF) heating technologies, today announced that heating has commenced at its commercial-scale RF XL pilot project at Marwayne, Alberta (the “Pilot”). The achievement represents a landmark milestone in the execution of the Pilot and the demonstration of RF XL’s potential to efficiently produce heavy oil and bitumen through RF-based electrification.

The objectives of the Pilot are to validate the RF XL technology as a means to produce heavy oil and oil sands, as well as to provide preliminary validation of the sustainable economic benefits resulting from RF XL. RF XL is a next generation, patented, low-cost, non-aqueous recovery solution which could yield low-to-zero scope 1 and scope 2 greenhouse gas emissions (GHGs) by decarbonizing heavy oil and oil sands production. 

“We are extremely pleased with the RF XL pilot progress to date. This commercial-scale test is the result of terrific innovation and determination, and is expected to prove out that decarbonization of Canadian oil production in the near term is not only viable but also highly economic. We believe RF-based electrification will play a very significant role in a successful energy transition for Alberta and for Canada. I am very excited for next steps,” said Geoff Clark, Acceleware’s CEO.

“We are excited to enter the final stage of our Marwayne pilot after many years of design and development work by the Acceleware team and our partners,” said Dr. Michal Okoniewski, Acceleware CSO. “Energizing the RF XL system for the first time is ground-breaking, and could bring terrific technological advancements to industry.”

The Pilot drilling and completions program began in August 2021, beginning with producer well spud, and culminating in producer well completion in December 2021.  

Facilities construction commenced in December 2021, and included the installation of power lines, electrical house (e-house), and production equipment. Installation of remaining electrical and monitoring equipment for the heating well, final facility commissioning, and energization of the site was completed in January and February 2022. Commissioning of the e-house, including low- and high-voltage testing of the Clean Tech Inverter (Acceleware’s proprietary power inverter which converts electricity into RF energy and powers the system), as well as various control systems was also completed. All remaining permits were secured.

A power ramp-up phase has been designed for the initial RF XL heating period, where Acceleware plans to gradually increase power, pause heating intermittently to evaluate performance, and test the RF XL system as required. The team will use data from this initial phase to optimize operations, establish an operating baseline for the system, and identify design enhancements for future deployments. The data will also be used to refine the operating plan, going forward. Oil production capabilities resulting from heating will also be assessed.

While the initial RF XL heating phase is planned for approximately six months, this period may be extended to allow Acceleware to capture additional information on the efficiency and operation of the technology. If proven successful, the Pilot will mark a world first for electrification of low-to-zero GHG heavy oil and oil sands production. With a successful Pilot and subsequent commercialization, numerous potential environmental benefits could be realized by oil sands producers deploying RF XL, and the Company anticipates highly skilled job creation as well as skilled jobs transition opportunities, including jobs for Indigenous peoples. 

Acceleware’s Marwayne Pilot is supported by Sustainable Development Technology Canada, Emissions Reduction Alberta (ERA), Alberta Innovates, Broadview Energy, and three major oil sands partners, including Cenovus Energy.

For further information about the Pilot, to review prior news releases and learn more about Acceleware’s innovative RF XL technology, please visit the Company’s website at acceleware.com.   

ABOUT ACCELEWARE: 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, its patented low-cost, low-carbon production technology for heavy oil and oil sands that is materially different from any heavy oil recovery technique used today. Acceleware's vision is that electrification of heavy oil and oil sands production can be made possible through RF XL, supporting a transition to much cleaner energy production that can quickly bend the emissions curve downward. Further, Acceleware’s RF XL technology could be a key component of an end-to-end integrated carbon management system that can eliminate greenhouse gas (GHG) emissions associated with heavy oil and oil sands production, whether for fossil fuels, or for future clean bitumen by-products such as petrochemicals, carbon fibre, and blue or green hydrogen production. RF XL uses no water, requires no solvent, has a small physical footprint, can be redeployed from site to site, and can be applied to a multitude of reservoir types. In shallow oil sands implementations, no tailings ponds will be required.  

Acceleware has partnered with Saa Dene Group (co-founded by Jim Boucher) to create Acceleware | Kisâstwêw to raise the profile, adoption, and value of Acceleware technologies. The shared vision of the partnership is to improve the environmental and economic performance of the energy sector by supporting ideals that are important to Indigenous peoples, including respect for land, water, and clean air.   

The Company’s 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 listed on Canada’s TSX Venture Exchange under the trading symbol “AXE”.   

ABOUT ALBERTA INNOVATES: Alberta Innovates is the province’s largest research and innovation agency. From funding to commercialization, we are Alberta’s innovation engine. 

We are working to solve today’s challenges, create new opportunities and forge a healthy, sustainable and prosperous future for Albertans today and for generations to come. 

We are where innovation happens, and we touch every corner of the province for the benefit of all Albertans. 

ABOUT SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA (SDTC): At SDTC, we support companies attempting to do extraordinary things. 

From initial funding to educational support and peer learning to market integration, we are invested in helping our small and medium-sized businesses grow into successful companies that employ Canadians from coast to coast to coast. We are relentlessly focused on supporting our companies to grow and scale in an increasingly competitive marketplace. 

The innovations we fund help solve some of the world’s most pressing environmental challenges: climate change, regeneration through the circular economy, and the well-being of humans in the communities they live in and the natural environment they interact with.

ABOUT EMISSIONS REDUCTION ALBERTA:For more than 12 years, ERA has been investing the revenues from the carbon price paid by large final emitters to accelerate the development and adoption of innovative clean technology solutions. Since ERA was established in 2009, they have committed $796 million toward 220 projects worth $6.5 billion that are helping to reduce GHGs, create competitive industries and are leading to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of 42.3 million tonnes of CO₂e by 2030. 

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES 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 “believes”, “estimates”, “plans”, “potential”, and “will”, and includes information about the timing of the execution of the Pilot, and the anticipated benefits of the RF XL technology. Acceleware assumes that current timelines will not be delayed by either internal or external causes, and that research and development effort including the commercial-scale test plans will result in commercial-ready products.   

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.  

DISCLAIMER Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  

For more information: Geoff Clark Tel: +1 (403) 249-9099 geoff.clark@acceleware.com 

Acceleware Ltd. 435 10th Avenue SE Calgary, AB, T2G 0W3 Canada Tel: +1 (403) 249-9099 www.acceleware.com 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5d369aba-a2ab-4cae-b7dc-9a101cd30428