Badger Explorer ASA – Successful Prototype Test Completed in Brumunddal
Badger Explorer ASA is pleased to announce that the final phase of Milestone 3 of the Badger Explorer Prototype Project has been completed. This final phase has been a new drilling test in the sandstone formation at the test site in Brumunddal. The Badger Explorer tool has drilled and built a plug below the water table in open hole, which has never been done before. The test was completed on 13 July and the results are encouraging.
“The conclusion of the test program of the prototype project is a conceptual breakthrough for our technology and definitely the most important milestone in the Company’s history so far.” says Marcus Hansson, Chairman of the Board.
The Prototype Project Agreement was entered into with The Research Council of Norway, ExxonMobil, Shell and Statoil in April 2005. The Badger Explorer Prototype Project has had three main milestones, the final one of which, Milestone 3, has now successfully been concluded. This milestone consisted of two phases, the first of which was to complete a drilling test in clay. The test was carried out at the Company’s test site at Sola in May this year, as reported in the press release on 30 May 2011.
The second phase of Milestone 3 was a new drilling test at the test site in Brumunddal where the Badger Explorer tool has operated below the water table and in open hole. The test was executed by the Badger Explorer tool drilling a 2.6 meter deep hole, transporting and separating the cuttings inside the tool before sealing off the hole by forming a solid plug. The drilling test lasted for approximately eight hours and was stopped due to mechanical challenges with the tool. This was expected as the prototype version’s design is not sufficiently robust to carry out drilling tests of longer duration.
Badger Explorer ASA considers the prototype project concluded by this successful drilling test. The final approval of Milestone 3 will release outstanding project funds of 1.44 MNOK from the Company`s industrial sponsors.
The final results from the Milestone 3 testing will be presented to the project’s steering committee mid August. This committee consists of the project’s industrial sponsors, ExxonMobil, Shell and Statoil and is the formal decision maker on the Badger Explorer Prototype Project.
Milestone 1, a technical feasibility study, was carried out in 2005 and approved by the oil companies in December 2005.
Milestone 2, the full-scale proof of concept, was carried out at the test site in Brumunddal in October 2010, as reported in the press release on 18 October 2010, and approved by the oil companies in December the same year.
“With the final phase of Milestone 3 now completed we can formally enter into dialogue with the oil companies and Innovation Norway regarding the content and the funding of the next phase of Badger Explorer’s development program, the pre-commercial phase. The main aim of this phase is to collect everything that we have learnt from the Prototype Project and transfer it to a robust product platform for the Badger Explorer technology and set the basis for the field version of the tool.” says CEO Kjell Erik Drevdal.
“The results of the Prototype Program are encouraging and the Company is proud to have completed the extensive test and development work which we are now concluding. We are looking forward to getting on with the next phase of the development of our services.” concludes Mr. Drevdal.
Stavanger, 15 July 2011
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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