Badger Explorer ASA develops a drilling tool with the potential of revolutionising the exploration of oil and gas resources. The Company is ready for the first onshore full scale self burial test of the Badger Explorer tool. A successful test is considered to be proof of the patented Badger Explorer concept and a concluding step in completing the Company's prototype phase.
The activities of the fourth quarter of 2009 were focused on the Demo50 version2 full scale self burial test. However the extreme cold weather in Eastern Norway has slowed down the progress of the test. The preparation efforts have been comprehensive and include qualification and assembly of the tool, design and testing of several functions relevant for the pre-commercial version of the Badger Explorer as well as measures to operate under these weather conditions.
'The temperatures experienced in Eastern Norway are outside the operating specifications of the current version of the Badger Explorer tool. However the commercial versions will be designed to operate reliably under such conditions. We have implemented compensatory measures to make it possible to operate safely in this weather. The self burial test is progressing at slow speed to ensure safe and healthy working conditions for the crew and avoid damaging the tool. The project team is ready to proceed with full speed as soon as the weather permits. We expect the test to be executed in the near future. Badger Explorer ASA has experienced positive development during the last 12 months. We are fully financed and have strong client partners. Our near term focus and attention lies on the first full scale self burial test', says President and CEO, Kjell Erik Drevdal.
Badger Explorer ASA holds a solid financial position, which provides grounds for a further ramp up of activities and expansion of the organisation which is in line with what has previously been communicated. As of 31 December 2009 the Badger Explorer Group had a net equity of MNOK 200.5, equivalent to an equity ratio of 91.0 %, and a cash position equal to MNOK 141. The strong cash position, and client partner support from oil majors ExxonMobil, Shell and Statoil in the pre-commercial phase, is considered to be sufficient funding to reach the commercial phase.
The Badger Explorer Group (includes Calidus Engineering Ltd.) had 4Q 2009 revenues of MNOK 2.1 (MNOK 2.5), and full-year 2009 revenues of MNOK 9.0 (MNOK 7.4). Operating expenses for 4Q 2009 amounted to MNOK 8.1 (MNOK 5.4.), and for the full-year 2009 to MNOK 24.7 (MNOK 18.2). EBITDA for 4Q 2009 amounted to MNOK -6.0 (-2.9), and for the full-year 2009 to MNOK -15.7 (MNOK -10.8).
The Company will present its 4Q 2009 results and a project update at Hotel Continental in Oslo on 17 February at 11:00 and on 18 February at 11:00 at the Company's offices in Stavanger.
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 to the surface through the cable.