Badger Explorer ASA – Q2/H1 2016 Report
Badger Explorer ASA (BXPL) releases its Q2/H1 2016 Report today. The Company's Q2/H1 2016 investor presentation can be accessed via dial-in teleconference on Thursday, 8th September 2016 at 08:30 - 09:30 CET. For participation please dial +47 21 98 42 00 and enter the access code 24 06 16 04. For alternative dial-in numbers, please visit www.globafy.com/free-conference-call/
On July 8th, Statoil approved the final key deliverable of Milestone 1 of the Badger Explorer Development Program; long term qualification testing of a cuttings transport system developed in conjunction with Honeybee Robotics (US). The system was operated for several hundred hours, and increased the confidence to the system.
The first parts of Milestone 1, qualification of high power High Pressure High Temperature [HPHT] Transducers for the drilling and compaction systems in the Badger Explorer, and function testing of the cuttings transport system were completed in Q4 2015 and Q1 2016.
Installation and function testing of ultrasonic transducers in a custom built test setup have started at the University of Glasgow. The tests will commence as soon as possible, and will provide important knowledge about compaction efficiency under realistic conditions.
The Company has managed to keep expenses low for Q2 2016 while at the same time delivering important technical results.
On April 8th, BXPL received a Letter of Intent from Statoil where they express their intent to support the project going forward. The negotiations with CNPC-DR are still ongoing, and BXPL are actively working with several levels in their organization. CNPC-DR confirms their intention to join the Badger Explorer Development Program, but the process has taken much longer than anticipated.
Partnership dialogues with international oilfield service companies are still ongoing but the current business climate has had a serious impact on their ability to start new projects.
Summarizing the Q2/H1 2016 financial results for BXPL: Revenues for Q2 2016 were NOK 41,600 and NOK 41,600 for H1 2016, compared to NOK 0.00 for Q2 2015 and NOK 0.00 for H1 2015. Operating expenses for Q2 2016 were NOK 1.312 million and NOK 3.010 million for H1 2016, compared to NOK 3.515 million for Q2 2015 and NOK 7.550 million for H1 2015. EBITDA for Q2 2016 was NOK –1.270 million and NOK -2.969 million for H1 2016, compared to NOK -3.515 million for Q2 2015 and NOK -7.550 million for H1 2015. The cash position at BXPL was NOK 286,594 as of 30th June 2016, compared to NOK 857,282 as of 30th June 2015.
The long term qualification test of the cuttings transport system represents a significant step forward for BXPL. One of the main challenges with the Badger concept has been solved, thus significantly reducing the technology risk for the commercial Badger tool.
The work to develop and qualify solutions for the rest of the challenges with the Badger concept will continue.
Negotiations with existing and new oil company sponsors are on-going.
The following documents are attached: Q2/H1 2016 Report and Q2/H1 2016 Investor Presentation.
Stavanger, 7th September 2016
For further information, please contact:
Roald Valen, CEO, cell phone +47 938 31 301
Gunnar Dolven, CFO, cell phone +47 908 53 168