Acceleware enters farms-in deal in Saskatchewan

Executive Summary

• Acceleware Ltd. has entered into a farm-in agreement for one section of land in Saskatchewan targeting the Mannville stack to demonstrate its RF XL 2.0 technology.
• The agreement grants Acceleware the opportunity to drill an RF XL 2.0 horizontal well pair in 2026 in exchange for a gross overriding royalty.
• Upon payout of Acceleware's invested capital, the farmor's royalty converts to a 40% working interest, with potential for additional well pairs.

Key Details

• Transaction Structure: Farm-in agreement for one section of land in Saskatchewan.
• Target: Mannville stack; specifically targeting heavy oil resources with higher viscosity that are not economically developable via thermal methods like SAGD.
• Operational Plan: Opportunity to drill an RF XL 2.0 horizontal well pair in 2026.
• Royalty Terms: Acceleware receives a gross overriding royalty initially. Upon payout of Acceleware's invested capital, the farmor's royalty converts to a 40% working interest.
• Additional Rights: The agreement provides the potential to drill additional well pairs on the property.
• Strategic Context: The deal supports Acceleware's strategy to assemble a portfolio of heavy oil production rights to accelerate RF XL 2.0 commercialization.
• Incentives: Deployment is expected to enable utilization of the conditionally approved Saskatchewan Petroleum Innovation Incentive transferrable royalty credit.

Notable Quotes

• "This farm-in agreement is a key step in Acceleware's strategy to accelerate RF XL 2.0 commercialization by assembling a portfolio of heavy oil production rights," said Geoff Clark, chief executive officer of Acceleware.
• "We are looking for heavy oil resources that cannot be economically developed any other way, so Acceleware views the Mannville Stack in Western Canada as a key target area for RF XL 2.0."