Badger Explorer ASA – Q1 2016 Report
Badger Explorer ASA (BXPL) releases its Q1 2016 Report today. The Company's Q1 2016 investor presentation can be accessed via dial-in teleconference on Thursday, 26th May 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 16 March 2016, Statoil approved the second key deliverable of Milestone 1 of the Badger Explorer Development Program; function testing and verification of a cuttings transport system developed in conjunction with Honeybee Robotics (US). The function test shows that Badger Explorer has found a viable solution for one of the main challenges with the Badger concept, and the final milestone in the Development Program will contain long term tests of the system.
The first part of Milestone 1, qualification of high power High Pressure High Temperature [HPHT] Transducers for the drilling and compaction systems in the Badger Explorer, was completed in Q4 2015. Employing cutting edge technology, the transducers represent a significant step in the development of compaction and drilling systems for Badger Explorer tools. Going forward, the transducers will be used in compaction experiments at the University of Glasgow to characterize the compaction efficiency under HPHT conditions.
Expenses for Q1 2016 have been kept low, however key technical results have been delivered. The Company moved into new facilities at IRIS in Stavanger March 2016, giving access to world class research and test facilities.
Summarizing the Q1 2016 financial results for BXPL:
No revenue was recognized as the Company is in a product development phase and currently generates losses. Operating expenses for the first quarter ended March 2016 amounted to NOK 1.698 million, compared to NOK 4.035 million for the first quarter ended March 2015. BXPL’s total comprehensive income shows a net loss of NOK -1.855 million in the first quarter of 2016, compared to NOK -4.196 million in the first quarter of 2015. Cash and cash equivalents were NOK 328,801 as of 31 March 2016, compared to NOK 1.082 million as of 31 March 2015. Shareholder’s equity for BXPL was NOK 64.032 million as of 31 March 2016, with an equity ratio of 41.4%, compared to NOK 74.925 million as of 31 March 2015 (equity ratio of 48.9%).
Successful function testing of the cuttings transport system and qualification of ultrasonic transducers are important steps towards a commercial Badger tool.
In 2016, BXPL will continue to develop and qualify solutions for the main challenges with the Badger concept.
The negotiations with oil company sponsors are on-going and will be completed as soon as possible. Funding of operations in 2016 remains a top priority for the Management and Board of Directors.
The following documents are attached: Q1 2016 Report and Q1 2016 Investor Presentation.
Stavanger, 25th May 2016
For further information, please contact:
Øystein Larsen, CEO, cell phone +47 932 68 743
Gunnar Dolven, CFO, cell phone +47 908 53 168