Badger Explorer ASA – Steering Committee of the Badger Explorer Prototype Project Approved Test at Brumunddal
Badger Explorer ASA (BXPL) is pleased to announce that the Steering Committee, consisting of ExxonMobil, Shell and Statoil, has unanimously approved the results of the drilling test performed at Brumunddal as Milestone 2 of the Prototype Development Project.
The Steering Committee that is headed by ExxonMobil also approved the disbursement of funding in the amount of MNOK 4.05. The disbursement of funding is connected to having achieved Milestone 2.
The Prototype Agreement between BXPL and ExxonMobil, Shell and Statoil was signed in April 2005. Milestone 1 consisted of a feasibility study and was approved by BXPL’s partners in December of 2005. The results of the full scale proof-of-concept test, carried out at the test site at Brumunddal in October, in reference to the press release sent by BXPL on 18 October 2010, are now approved by the Steering Committee as Milestone 2.
The approved Milestone 2 consisted of a full scale verification of the Badger Explorer concept. The tool has in an autonomous operation drilled in a sandstone formation, transported and separated cuttings as well as compacted the same into a solid plug behind the tool below the water table.
”Without doubt the accomplishment and the Steering Committee’s approval of the concept verification is the most important milestone of the Company’s development program so far. With the full scale demonstration performed the comprehensive development work on a tool that can be operated in different geological formations and under varying pressure and temperature conditions continues.” says CEO Kjell Erik Drevdal.
Badger Explore ASA and its partners, ExxonMobil, Shell and Statoil, have agreed to continue their cooperation and two additional tests will be performed during the first half of 2011. One test will take place at Brumunddal whilst the second will be performed in a different geological formation.
”BXPL is proud having received the approval for the comprehensive test- and development work that has been performed up to now. The tasks and the work ahead of us are challenging, by no means easy. With the accomplishment of the most important milestone so far we continue the development work with enthusiasm and optimism.” concludes Kjell Erik Drevdal.
Stavanger, 7 Decemeber 2010
For further information, please contact:
Kjell Erik Drevdal, CEO, cell phone +47 916 43 552, office +47 52 97 45 15
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40
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