Badger Explorer ASA – Q2/H1 2015 Report
Badger Explorer ASA (BXPL) releases its Q2/H1 2015 Report today. The Company's Q2/H1 2015 investor presentation in Oslo will take place at Arctic Securities ASA's premises at Haakon VII's gate 5, 0123 Oslo on Thursday, 20th August 2015 at 13:00 - 14:00 CET. The investor presentation in Stavanger will take place at Badger Explorer ASA's premises at Forusskogen 1, 4033 Stavanger on Friday, 21st August 2015 at 09:00 - 10:00 CET.
After signing the first phase of the Badger Development Program with Statoil on 8th June 2015, the main focus for BXPL during Q2 2015 has been to finalize scope of work for the Development Program and identify deliverable Milestones. BXPL management has also continued working to secure further funding for the Development Program.
With input from Statoil, BXPL has rescheduled the Development Program to fit the present financial climate. This means BXPL is planning for reduced spending during 2015 and a ramp up later during the Development program.
The recent fall in the oil price has led to comprehensive restructuring and cost cutting within the oil industry. As a result, BXPL is currently experiencing longer lead times when negotiating further financial support for the development of the Badger technology.
Even though CNPC-DR is still committed to continue sponsoring of the Badger Project, the negotiations with CNPC-DR for their final commitment to the Development Program have subsequently been delayed. The main reasons for the delay are the falling oil price along with the current political climate between China and Norway.
Negotiations between Badger and CNPC-DR are expected to continue in Beijing during Q3 and Q4 2015 with expected financial contribution in 2016.
With only one sponsor currently committed to support the Badger Development Program, Badger Management has in parallel with continued negotiations with previous sponsors decided to try and secure funding from other sources, and as such, is in direct dialog with international oil service companies.
As reported previously, BXPL has also implemented a large cost saving program to adjust to the new business climate. By the end of June 2015, 38 % of staff were made redundant, salaries for senior management were reduced and further cost cuts were implemented.
Summarizing the Q2/H1 2015 financial results for BXPL:
• Revenues for Q2 2015 were NOK 0.00 and NOK 0.00 for H1 2015, compared to NOK 0.00 for Q2 2014 and NOK 0.00 for H1 2014.
• Operating expenses for Q2 2015 were NOK 3.515 million and NOK 7.550 million for H1 2015, compared to NOK 5.254 million for Q2 2014 and NOK 10.059 million for H1 2014.
• EBITDA for Q2 2015 was NOK –3.515 million and NOK -7.550 million for H1 2015, compared to NOK -5.254 million for Q2 2014 and NOK -10.059 million for H1 2014.
• The cash position at BXPL was NOK 857,282 as of 30th June 2015, compared to NOK 2.425 million as of 30th June 2014.
The oil business is currently undergoing comprehensive changes and cost cuttings which also have a serious effect for BXPL. 2015 has to be completed at minimum cost. BXPL is confident that the agreed technical deliveries for 2015 are achievable.
During 2016, we expect to see an improving business climate that will enable BXPL to ramp up the ongoing development activities.
For further information, please contact:
Steinar Bakke, CEO, cell phone +47 930 70 466, office +47 52 97 45 50
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40
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