3Q 2008 - FIRST SELF-BURYING TEST ONGOING IN DENMARK
The first self-burying operation of the Badger Explorer Demo50 version is currently being tested in Denmark. The company has not experienced any technological set backs with regards to the concept. The test project is however progressing slower than anticipated due to operational challenges like weather and test site conditions. The main functions have been verified and computer controlled drilling has been performed. Subsurface compaction has not yet been tested, but will be undertaken shortly. Going forward, focus will be on improvements of the drilling tool through extensive testing. The Badger Explorer development program is fully financed. Badger Explorer ASA raised equity of altogether MNOK 235 in 2005 and 2007. In addition, the extended partner agreements with StatoilHydro and ExxonMobil were signed in April 2008. The company's financial strength and these partnerships allow for full focus on completing the development program as scheduled. Gross spending is below budget as of 30.09.2008 and cash position is stronger than forecasted. As of 30th September 2008 the Badger Explorer Group has a net equity of MNOK 213 , equivalent to an equity ratio of 92.2 %. Net cash position is MNOK 185 . Combined with the extended partner agreements this is regarded to be sufficient cash to reach a commercial stage. The company will during 4Q continue its test program in Denmark and during repetitive tests focus on stabilisation and harmonisation of and between various functions including preparations for the next version - a Demo125 unit. This unit will be built to take sub-surface temperatures up to 125 degrees Celsius. Such a tool will undergo tests on far greater depths, and these tests are planned to be performed throughout 2009. The company's development program is in line with the communicated plan. The Badger Explorer Group (includes Calidus Engineering Ltd.) had revenues of MNOK 1.3 in 3Q 2008, compared with kNOK 22 in 3Q 2007. Operating expenses for 3Q 2008 amounted to MNOK 3.4, compared with MNOK 2.2 for 3Q 2007. EBITDA for 3Q 2008 amounted to MNOK -2.0, compared with MNOK -2.2 for 3Q 2007. For further information, please contact: Kjell Erik Drevdal, CEO, +47 916 43 552 Gunnar Dolven, CFO, +47 908 53 168 www.bxpl.com 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.