Badger Explorer ASA – Q3 2014 Report
Badger Explorer ASA (BXPL) releases its Q3 2014 Report today. The Company's Q3 2014 investor presentation in Oslo will take place at the Hotel Continental on Thursday, 30th October 2014 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, 31st October 2014 at 09:00 - 10:00 CET.
The main activity during Q3 2014 at BXPL has been to plan and execute Milestone 5 of the Badger Explorer Demonstrator Program. The Milestone 5 test is comprehensive and includes stepwise trial of modules and the entire tool. As can be expected on a prototype, several challenges have been encountered, resolved and will be implemented.
Formal approval of Milestone 5 of the Demonstrator Program (completion of the second generation pilot tool) is expected in Q4 2014. Upon approval of Milestone 5 by the Steering Committee, NOK 4.335 million will be released.
In addition to the full scale test, BXPL has spent much time during Q3 2014 on introduction of the Chinese partner to the Badger Explorer Demonstrator Program. As reported in the Q2 2014 Board of Directors report, on 5th August 2014 China National Petroleum Corporation Drilling Research Institute (CNPC DR) signed a Co-operation Agreement with BXPL to become the fifth participant in the ongoing Badger Explorer Demonstrator Program. In addition, CNPC DR expresses a willingness to participate as a full member in the next phase development, The Badger Development Program, planned to go on until the end of 2017.
Summarizing Q3 2014 financial results for the Badger Explorer Group:
• Revenues for Q3 2014 were NOK 0.00 and NOK 0.00 as of 30th September 2014, compared to NOK 0.00 for Q3 2013 and NOK 70,268 as of 30th September 2013.
• Operating expenses for Q3 2014 were NOK 5.677 million and NOK 15.735 million as of 30th September 2014, compared to NOK 2.358 million for Q3 2013 and NOK 13.926 million as of 30th September 2013.
• EBITDA for Q3 2014 was NOK -5.677 million and NOK -15.735 million as of 30th September 2014, compared to NOK -2.358 million for Q3 2013 and NOK -13.856 million as of 30th September 2013.
• The cash position at BXPL was NOK 411,616 as of 30th September 2014, compared to NOK 17.259 million as of 30th September 2013.
• As of 30th September 2014, BXPL had a net equity of NOK 84.887 million (equity ratio of 53.2%), compared to NOK 107.756 million as of 30th September 2013 (equity ratio of 70.0%).
• The cash need for the planned activities for 2014 is covered.
By delivery of Milestone 5, the Demonstrator Program is for all practical purposes completed and the delivery represents a major reduction in the technical risk related to the development of the Badger Explorer technology.
The Board of Directors is pleased that a new and the fifth partner have joined the Demonstrator Program. The Board is furthermore convinced that CNPC DR will be a strong contributor to secure future commercial operations and sale of Badger Explorer services.
The main focus for the BXPL organization will be to finalize the Scope of Work for the Development Program, define early commercial Badger versions and secure participation from the partners.
Kick off for the Development Program is expected to be early 2015.
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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