AXE Acceleware Ltd

Acceleware Ltd. (“Acceleware” or the “Company”) continues to advance and validate its heavy oil electrification technology on its commercial-scale, RF XL pilot project at Marwayne, Alberta (the “Pilot”). The Company is pleased with progress at the Pilot to date, and based on initial observations, remains confident that RF XL will become viable as a critical technology in the effort to decarbonize heavy oil and oil sands production.

To date, the RF XL technology has been performing well, in-line with expectations:

1. The clean tech inverter (“CTI”) has been operational for four consecutive months, which is a significant achievement and something that has never been done before; and
2. The Company has observed sustained heating of the formation around the RF XL well.

Recently, the fibre optic distributed temperature sensing (DTS) system in the heating well was damaged during a maintenance operation at the site. Though not a core component of the RF XL technology itself, the DTS is important to data gathering and to regulate injected power such that the system operates within specified parameters. The DTS will need to be removed from the well, inspected and repaired. In conjunction with repair of the DTS, the Company will take the opportunity to remove and inspect certain downhole components of the RF XL system, to gain valuable data regarding the initial performance of the RF power transmission system.

The next steps for the Pilot are anticipated to involve pausing heating while the Company: 1) retrieves, inspects, and repairs the damaged DTS and 2) inspects and analyzes various downhole components of the RF XL system. Upon completion of these steps, heating operations and further testing will immediately resume. The Company intends to continue to produce oil while executing these steps.

The Company will set out to complete this work as soon as services and parts are available. Learnings from the operation are expected to result in additional IP that could further refine RF XL and the CTI design, performance, and economics in the future.

CEO Geoff Clark says, “As is generally the case in a commercial pilot, we are continually adjusting and incorporating new learnings into our technology. This is the nature of research and development, and we remain very pleased and excited with our progress. We are going to have these repairs done as soon as we possibly can and look forward to providing an update once they’ve been successfully completed.“

Added Michal Okoniewski, CSO, “To have an in-situ RF heating system running for four consecutive months is a major milestone and is something that’s never been done before. We remain confident that, with the resolution of a few mechanical issues, we will see meaningful progress in the near term. Frankly, we’ve already made significant progress; we have demonstrated initial heat driven by RF XL in the formation as we expected, and are looking forward to the coming weeks and months to further develop and assess the technology.”

Acceleware continues to produce oil at rates consistent with the gradual ramp up of heating, with no freshwater use and no solvent injected into the ground.  

Funding for the Pilot has been provided in part by grants from Alberta Innovates, Sustainable Development Technology Canada, and Emissions Reductions Alberta.

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 invests in research, innovation and entrepreneurship to drive provincial economic growth and diversity. We ignite the power of innovation through our work with researchers, industry and entrepreneurs to move Alberta to a lower-carbon future, promote the responsible use of land and water, and contribute to the improved health and well-being of Albertans. Alberta Innovates provides technical expertise, entrepreneurial advice and support, opportunities for partnerships, and funding to advance the best ideas. We support a broad range of research and innovation activity – from discovery to use. Collaboration is at the heart of what we do – bringing together bright minds and great ideas.

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) 249-9099geoff.clark@acceleware.com

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

RF XL Commercial Pilot Test at Marwayne, AB.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cf10f874-ef85-443b-879e-20178c1b8dbc