Badger Explorer ASA – 3Q 2012 Report
Badger Explorer ASA (BXPL) releases its 3Q 2012 Report today. The investor presentation in Oslo will take place at Hotel Continental on Thursday, 25th October 2012 at 11:00 - 12:30. The investor presentation in Stavanger will take place at Badger Explorer ASA's premises at Forusskogen 1, 4033 Stavanger on Friday, 26th October 2012 at 09:00 - 10:30.
In the third quarter, a comprehensive and structured technical evaluation was launched, making use of third party experts and expertise from BXPL’s sponsors, to identify and prioritize the further reduction of residual technology risk and to accelerate the development work. Focus areas have been highlighted and resource requirements better defined. This exercise will improve the robustness of the Demonstrator Program and help prepare for the first commercial Badger tool.
Negotiations with new sponsors and an appropriate strategic partner continue to make progress.
To strengthen the performance of Calidus Engineering Ltd, Brian Green was appointed Managing Director in early October.
Cash flow totaled kNOK -26.0 in 3Q 2012 and MNOK -14.1 as of 30th September 2012 (net change in cash flow of MNOK –12.9 in 3Q 2011 and MNOK 4.0 as of 30th September 2011).
Summarizing the 3Q 2012 financial results for the Badger Explorer Group (including 75%-owned Calidus Engineering Ltd.):
Revenues amounted to kNOK 1,561 for 3Q 2012 and to kNOK 7,158 as of 30th September 2012 (kNOK 1,850 for 3Q 2011 and kNOK 7,837 as of 30th September 2011);
Operating expenses for 3Q 2012 were kNOK 6,480 and kNOK 21,719 as of 30th September 2012 (kNOK 10,867 for 3Q 2011 and kNOK 28,457 as of 30th September 2011);
EBITDA for 3Q 2012 was kNOK -4,919 and kNOK -14,561 as of 30th September 2012 (kNOK –9,017 for 3Q 2011 and kNOK –20,620 as of 30th September 2011).
Cash management continues to be a priority:
- Cash reserves as of 30th September 2012 are MNOK 25.1; the same level as at the end of 2Q 2012.
- A new overdraft facility has been established;
- The Company’s approved tax declaration for 2011 was issued in early October. Badger Explorer ASA is due a tax refund of MNOK 2.1, which includes “Skattefunn”; an R&D grant via the tax regime in Norway;
- Grants totaling MNOK 28 have been awarded by Innovation Norway and the Research Council of Norway;
- Advanced discussions are under way with new sponsors and a potential strategic partner;
- An asset sale remains an option, if deemed advantageous.
The ongoing structured technical evaluation maintains the recent focus on reduction of technology risk, providing an improved platform from which to move to the commercial phase.
Stavanger, 25th October 2012
For further information, please contact:
David Blacklaw, CEO, cell phone +47 406 44 010, office +47 52 97 45 50
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40