Badger Explorer ASA - 2Q/1H 2012 Report
Badger Explorer ASA ('BXPL') releases its 2Q/1H 2012 Report today. The
2Q/1H 2012 investor presentation in Oslo will take place at Hotel
Continental on Thursday, 23rd August 2012 at 11:00 - 12:30. A light
lunch will be served. The investor presentation in Stavanger will take
place at Badger Explorer ASA's premises at Forusskogen 1, 4033 Stavanger
on Friday, 24th August 2012 at 09:00 - 10:30.
Following the completion of the Prototype Phase of Badger Explorer in
2011, a three-year plan for Transformational Change at BXPL was
developed, focusing on attaining first commercial applications as early
as possible. Significant progress has been achieved over the past year,
including substantial reductions in technology risk, notably in the
areas of cuttings transport and separation. A plan has also been defined
for deployed of the Badger Explorer in a Field Pilot during early 2015.
ExxonMobil and Statoil are sponsors of the Badger Demonstrator Program,
which consists of six concrete milestones. To increase the time
available for reliability engineering and the development of system
operational experience, several milestones have been brought forward,
and a Beta Version of the Badger tool is now scheduled to be ready for
testing by mid-2013. These changes should increase the overall
probability of success, and accelerate the development timing, given
that we are now ahead of the original schedule.
In early August, the Steering Committee approved the Milestone 1
deliverables (achieved in June 2012), and approved release of the
related sponsor funding of MNOK 6.0.
BXPL's plan is to add 2-3 further sponsors, and specific discussions are
under way with additional operating companies to this end. Two such
companies have recently indicated willingness to sign sponsorship
agreements, and we hope to announce these agreements during October
The Badger Explorer Groups gross cash reserves amount to MNOK 25.1 as of
30 June 2012.
Cash management continues to be a priority:
· A new overdraft facility has been established;
· The Demonstrator Program Milestone 1 payment has been invoiced;
· Grants have been awarded by Innovation Norway and the Research
Council of Norway;
· Advanced discussions are under way with new sponsors;
· An option of an asset sale is under consideration if advantageous
Cash flow totaled MNOK -6.2 in 2Q 2012 and MNOK -14.1 in 1H 2012 (net
change in cash flow of MNOK 18.2 in 2Q 2011 and MNOK 16.9 in 1H 2011).
Summarizing the 2Q/1H 2012 financial results for the Badger Explorer
Group (including 75%-owned Calidus Engineering Ltd.):
Revenues amounted to kNOK 1987 for 2Q 2012 and to kNOK 5597 for 1H 2012
(kNOK 2928 for 2Q 2011 and kNOK 5986 for 1H 2011);
Operating expenses for 2Q 2012 were kNOK 7670 and kNOK 15239 for 1H 2012
(kNOK 9300 for 2Q 2011 and kNOK 17590 for 1H 2011);
EBITDA for 2Q 2012 was kNOK -5683 and kNOK -9642 in 1H 2012 (kNOK -6371
for 2Q 2011 and kNOK -11603 for 1H 2011).
Throughout the first half of 2012, BXPL engineers have been focused on
solutions to key technical challenges. Strong progress has been made,
providing an improved platform from which to move to the commercial
phase of the Badger Explorer's development. The focus for the remainder
of the year is to build on this technical momentum, whilst finalizing
further sponsorships, firming up the Field Pilot and strengthening the
Stavanger, 22nd August 2012
For further information, please contact:
David W. Blacklaw, CEO, cell phone +47 406 44 010, office +47 52 97 45
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 4