AXE OBTAINS PARTIAL SUCCESS In $ 5M RF XL REDEPLOYMENT- HOWEVER, this is CONDITIONAL on Acceleware RECEIVING the REST of the $ 5 million FINANCING from OTHER SOURCES In the six months ended June 30, 2024 , the Company continued to work closely with industry partners to progress next steps in the RF XL Pilot. An output of this work is the determination that the most practical path forward involves a redeployment of all subsurface components incorporating the multiple improvements and upgrades that Acceleware has made to the RF XL downhole system. Acceleware is actively sourcing an additional $5 million of funding to complete the redeployment. The Company has been successful in securing partial non-dilutive funding for the redeployment, contingent on receiving the remainder of the $5 million. The Company has identified several potential industry and government funders and is in the process of contacting and discussing the project with them. The primary outreach message is that the redeployment is expected to enable higher power to be distributed in the reservoir for a sustained period in a second phase of heating. More details on the RF XL Pilot are discussed below.
RF XL PILOT UPDATE
Consistent with the last update, Acceleware plans to continue a second phase of heating after a significant subsurface upgrade plan to address the moisture ingress issue. All RF XL subsurface components will be removed, refurbished, or upgraded, and then redeployed. This plan was developed in consultation with industry partners and service providers and among the alternatives examined, it is expected to have the highest probability of achieving higher power injected into the reservoir for a sustained period. An additional $5 million of funding is required to complete the redeployment, and Acceleware is actively working to raise these funds. Acceleware has secured partial funding for the redeployment conditional on securing the balance of the funds from industry partners or other sources. The final timing and cost of the redeployment and subsequent heating remains primarily dependent on financing, partner investment, and the successful deployment of repairs and components. Upgrades have been specifically designed to eliminate the moisture ingress issue. In addition, measures will be taken to add resilience to the system to ensure long-term operation if moisture does return. Upgrades will also be made to augment success of the CTI function, including providing more accurate monitoring of broadband voltage, current and power.
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