Badger Explorer ASA - 2Q and 1H 2009 results

8/26/2009, 9:38 PM (Source: GlobeNewswire)
The second quarter has been eventful and characterised by steady
progress. Badger Explorer ASA has not experienced any significant
set-backs and through extensive drilling tests, functions of the
Badger Explorer tool have been verified. The work has involved design
improvements, drilling of numerous holes in representative rock
samples, transporting and compaction of drill cuttings into firm and
solid plugs behind the Badger Explorer tool.
"The Badger Explorer development project has made good progress
during the summer. Successful drilling and testing of the
functionality has led to a verification of key functions. In addition
we have been able to make solid plugs. To me the recent development
is a further indication of the system's functionality and potential,
and this provides reasons for optimism regarding the activities
planned for the coming months", says President and CEO, Kjell Erik
Drevdal.

Numerous natural self-burial test sites have been identified and
investigated, however none of them fulfil all the test site criteria
set by the Company. The search for a natural test site and
alternatives continues.

During the second quarter of 2009 more than 50 jig-based systems
drilling tests incorporating key functions of the tool have
successfully been performed in different types of rock. However the
system is still not at the desired level of stability. The Company
has secured access to state-of-the-art sensors and logging tools to
be supplied by two highly qualified international vendors. This is
expected to save time and lower development costs.

The Badger Explorer Group has through 1H 2009 managed to develop
technology enabling the making of firm plugs (essential for burial).
These technologies are essential for the success of the Badger
Explorer tool, hence the board reiterates its optimistic view on the
remainder of 2009 and the coming year.

Badger Explorer ASA has retained its solid financial position, which
provides grounds for a further ramp up of activities and also
expanding the organisation in line with what has been previously
communicated. As of 30 June 2009 the Badger Explorer Group has a net
equity of MNOK 209.5, equivalent to an equity ratio of 92.1 %. Net
cash position was MNOK 81.8. In addition the company holds MNOK 78.8
in bank bonds. Combined with the partner agreements with the oil
majors ExxonMobil, StatoilHydro and Shell, this is considered to be
sufficient to finance the company through to a commercial stage.

The Badger Explorer Group (includes Calidus Engineering Ltd.) had
revenues of MNOK 1.9 in 2Q 2009 and MNOK 4.4 in 1H 2009, compared
with MNOK 1.5 in 2Q 2008 and MNOK 3.5 in 1H 2008. Operating expenses
for 2Q 2009 amounted to MNOK 4.7 and to MNOK 9.9 for 1H 2009,
compared to MNOK 5.0 for 2Q 2008 and MNOK 9.4 for 1H 2008. EBITDA for
2Q 2009 amounted to MNOK -2.8 and to MNOK -5.5 in 1H 2009, compared
to MNOK -3.4 for 2Q 2008 and MNOK -5.8 for 1H 2008.

The company presents its 2Q report and gives a project update, 27
August at 11:00, Hotel Continental, Oslo, and 28 August at 11:00 in
the company's offices in Stavanger.

For further information, please contact:
Kjell Erik Drevdal, CEO, +47 916 43 552
Gunnar Dolven, CFO, +47 908 53 168

About Badger Explorer ASA
Badger Explorer ASA is developing a revolutionary method for
exploration and verification of oil and gas prospects, called Badger
Explorer. Badger Explorer drills down and buries itself in the
underground, equipped with numerous sensors, which measure and
register vital formation and physical data. The method provides a
substantially lower risk, cost and complex operation compared to
utilising an expensive conventional drilling rig.
The crushed formation cuttings are transported through the tool,
deposited and compressed in the void behind the unit. Potential
excess volume is injected into fractures generated by Badger
Explorer. The unit is connected to a combined power and signal cable
which again is connected to the surface. The unit is powered by
electricity and transmits data signals to the surface through the
cable.
www.bxpl.com


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