Badger Explorer ASA - Signs 3-year development agreement with Statoil
Badger Explorer ASA has signed a 3-year development agreement with Statoil, whereby the oil company will sponsor the Badger Explorer Demonstrator Program for the period 2012-2014. The objective of the Demonstrator program is to move Badger technology from the prototype stage to a viable and robust commercial product. ExxonMobil confirmed a similar sponsorship agreement 12thDecember – 2011.
"We consider continuing sponsorship by Statoil and ExxonMobil to be very significant. Badger Explorer has passed a number of important technological milestones in 2011, and come several steps closer to our first commercial service. Statoil’s continued participation is an important factor in the ongoing development process", says David Blacklaw, CEO of Badger Explorer ASA.
The Development Agreement represents the formal start of the Badger Demonstrator program. This program establishes a design basis for the next generation tool, the Badger Explorer 125 (BE125), where lessons learned from the prototype project will be implemented. The project management, construction and testing of the BE125 will be derived from this design. A significant part of the Demonstrator program will be to develop and configure commercial applications in line with a Field Pilot Program, and be used for long-term reservoir monitoring and management.
According to the Agreement, Badger Explorer ASA will be awarded funds upon reaching development milestones. Statoil’s financial contribution will amount to NOK 9 million over the period 2012 through 2014.
Other contributors to the Demonstrator Program will include Innovation Norway, whose NOK 20 million award was announced in the press release of 23 November 2011. In addition, negotiations with other oil potential sponsors are ongoing, and the company aims to have four to five program sponsors in total.
In parallel with the implementation of the Demonstrator program during the period 2012-2014, Badger Explorer aims to deliver the first field pilots on a commercial basis. These deliveries are the subject of a separate project, in which the Research Council of Norway has awarded a support totaling NOK 8 million (see announcement on 16 November 2011). The company is currently negotiating the delivery of the first field pilot.
The Agreement with Statoil and ExxonMobil, in conjunction with the awards by both Innovation Norway and the Research Council of Norway and other anticipated agreements, provides for maintenance of the company's high level of activity over the next three years.
Stavanger, 19th April 2012
For further information, please contact:
David W. Blacklaw, CEO, cell phone +47 406 44 010, 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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