Badger Explorer ASA – Q3 2013 Report
Badger Explorer ASA (BXPL) releases its Q3 2013 Report today. The investor presentation in Oslo will take place at Hotel Continental on Thursday, 31st October 2013 at 13:00 – 14:30 CET. The investor presentation in Stavanger will take place at Badger Explorer ASA's premises at Forusskogen 1, 4033 Stavanger on Friday, 1st November 2013 at 09:00 - 10:30 CET.
Throughout Q3 2013 activities at Badger Explorer ASA (BXPL) had four main objectives:
- Delivery of Milestone 3 (M3) under the Badger Explorer Demonstrator Program.
- Change of CEO; Mr. Steinar Bakke took over as new CEO in Q3 2013.
- Work closely with sponsors outlining future achievable technical and industrial targets; and
- Initiate discussions with sponsors about future funding.
The Badger Explorer Demonstrator Program is a milestone based program and designed to develop and build the first commercial grade Badger Explorer tool, ready for deployment in a Field Pilot by early 2015.
Milestone 3, a beta version of the Badger tool ready for comprehensive testing has been delivered and was approved by the Steering Committee on 29th October. Highlights of the M3 delivery include:
- Beta version modules for drilling, transport, compaction and anchor were delivered according to Milestone 3;
- Testing of critical technologies within drilling, transport, compaction and external friction according to Milestone 4 are ahead of schedule;
- Pressure and temperature sensors are installed in the tool; and
- BXPL development procedures are based on DNV Recommended Practice – DNV-RP-A203.
The Beta version of the tool will be used to further identify and mitigate technology risks, better understand overall system operation in representative environments and gain hands-on operational experience with the tool. The remaining time of the Badger Explorer Demonstrator Program, until end of 2014, will be a test phase to qualify the tool for field testing and industrial use.
Summarizing the Q3 2013 financial results for the Badger Explorer Group:
- Net cash flow arising from the operating activities in the continuing operations for Q3 2013 was -3,483 kNOK and -14,126 kNOK as of 30th September 2013, compared to -1,892 kNOK for Q3 2012 and 14,433 kNOK as of 30th September 2012.
- Revenues for Q3 2013 were 0.00 kNOK and 70 kNOK as of 30th September 2013, compared to 0.00 kNOK for Q3 2012 and 321 kNOK as of 30th September 2012.
- Operating expenses for Q3 2013 were 2,358 kNOK and 13,926 kNOK as of 30th September 2013, compared to 4,128 kNOK for Q3 2012 and 13,834 kNOK as of 30th September 2012.
- EBITDA for Q3 2013 was -2,358 kNOK and -13,856 kNOK as of 30th September 2013, compared to -4,128 kNOK for Q3 2012 and -13,513 as of 30th September 2012.
The cash position at BXPL is 17.3 MNOK as of 30st September 2013, compared to 25.1 MNOK as of 30th September 2012. The approval of M3 releases 15.2 MNOK of sponsor funds. Furthermore, the M3 delivery represents a significant risk reducing achievement.
Throughout 2013 the main technical and operational focus has been on delivering of Milestone 3 of the Badger Explorer Demonstrator Program. The Board of Directors is pleased with the sponsor’s approval of M3, and is optimistic the remaining Milestones of the BDP will be delivered by the end of 2014.
Ongoing discussions with present and potential new sponsors are aiming at achieving additional funding, which will be used to support the field-testing program and an acceleration of the development program.
Stavanger, 31st October 2013
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