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Badger Explorer (OSL:BXPL) Badger Explorer ASA (BXPL) has during 1H 2008 successfully conducted the first part of its Demo50 full-scale prototype test in Denmark. Jig-assisted tests have been performed onshore in an area with relevant geology, showing encouraging results and which verify that the test site and the prototype unit are well-suited for the semi-autonomous self burying tests.
The first half of 2008 has also seen the finalization of the extended partner agreement, which has been signed by ExxonMobil and StatoilHydro. The agreement involves extensive support from the partners in the ongoing development phase, covering the period through to and into commercial operation, expected in 2010. In return, the partners have secured first right of refusal to buy the full manufacturing capacity of Badger Explorer at market price for a period of three years from commercialisation. Finalization with Shell is expected, but still pending.
The Company is on-track with the development plan for Badger Explorer with regards to progress, technical development and budget.
Development within BXPL subsidiary Badger Plasma Technology AS has been brought to a tentatively conclusive phase, resulting in reduced focus for the coming 3-4 quarters. The additional resources will be made available to the Badger development program.
From a technical, contractual and commercial point of view important milestones with regards to the development of Badger Explorer are now being reached. The outlook for the rest of 2008 is positive, but challenging. Successful semi-autonomous tests of the Demo50 in Denmark will be a major technological milestone, however considerable engineering, systems development, testing and stabilisation will still be needed for the Demo125, planned for 2009.
BXPL are now proceeding with prototype assembly in order to initiate testing of the semi-autonomous Demo50 drilling unit within Q3 2008. Status of these tests will be given in connection with the presentation of 3Q 2008 results, scheduled for 22 October 2008.
The Badger Explorer Group (includes Calidus Engineering Ltd.) had revenues of MNOK 1.6 in 2Q 2008 and MNOK 3.6 in 1H 2008, compared with kNOK 33 in 2Q 2007 and kNOK 183 in 1H 2007. Operating expenses for 2Q 2008 amounted to MNOK 5.0 and to MNOK 9.5 for 1H 2008, compared to MNOK 2.9 for 2Q 2007 and MNOK 4.8 for 1H 2007. EBITDA for 2Q 2008 amounted to MNOK -3.4 and to MNOK -5.9 in 1H 2008, compared to MNOK -2.9 for 2Q 2007 and MNOK -4.6 for 1H 2007. The company's cash position per 30.06.2008 is MNOK 186. Equity totalling MNOK 212.1 (92.9 %).
For further information, please contact: Kjell Erik Drevdal, CEO, +47 916 43 552 Gunnar Dolven, CFO, +47 908 53 168
About Badger Explorer ASA Badger Explorer ASA is developing a revolutionary method for exploration and verification of oil and gas prospects, called Badger Explorer. Badger Explorer drills down and buries itself in the underground, equipped with numerous sensors, which measure and register vital formation and physical data. The method provides a substantially lower risk, cost and complex operation compared to utilising an expensive conventional drilling rig. The crushed formation cuttings are transported through the tool, deposited and compressed in the void behind the unit. Potential excess volume is injected into fractures generated by Badger Explorer. The unit is connected to a combined power and signal cable which again is connected to the surface. The unit is powered by electricity and transmits data signals back to the surface through the same cable. In addition, the wholly owned Badger Plasma Technology AS subsidiary has an exclusive licence to exploit the patented plasma channel drilling (PCD) technique developed at Britain`s University of Strathclyde. www.bxpl.com
