Badger Explorer ASA - 3Q 2009 results

10/26/2009, 5:49 PM (Source: GlobeNewswire)
Badger Explorer ASA - 3Q 2009 results

Badger Explorer ASA develops a drilling tool with the potential to
revolutionise the exploration of oil and gas resources. The Company
is currently in the phase of conducting a full scale self-burial test
of the tool. Several test locations have been explored and a suitable
test site has been chosen. The preparation process around this
self-burial test has started.

The Company's activities during the third quarter have been focused
on the assembly of the Badger Explorer Prototype tool, the Demo50
version2, and the modelling of the Badger Explorer's main processes.
In addition full scale testing of the redesigned
separation/compaction module has successfully taken place.

Throughout the third quarter the Company has signed important
strategic vendor agreements as well as having taken organisational
steps in order to prepare for the commercial phase. The positive
development is expected to materialise further in the fourth quarter
of 2009.

"We plan for the initial testing of the Prototype tool, the Demo50
version2, to take place in the fourth quarter and it's the Company's
goal to perform the onshore self-burial test before the end of 2009.
A successful self-burial test will proof the patented concept and
will mark a technological breakthrough which establishes the basis
for a defined cooperation with the client partners as well as being a
stepping-stone towards the launch of commercial services. We
therefore enter into yet another very exciting period for Badger
Explorer ASA", says President and CEO, Kjell Erik Drevdal.

Badger Explorer ASA holds a 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 September 2009 the Badger Explorer Group has a net equity of
MNOK 205.1, equivalent to an equity ratio of 91.8 %. In 2009 the net
spending is so far in accordance with the budget and the gross cash
position is estimated to amount to MNOK 133 by 31.12.2009. Combined
with the partner agreements with the oil majors ExxonMobil, Shell and
StatoilHydro this is considered to be sufficient to finance the
Company until its commercial stage.

The Badger Explorer Group (includes Calidus Engineering Ltd.) had
revenues of MNOK 2.4 in 3Q 2009, compared to MNOK 1.3 in 3Q 2008.
Operating expenses for 3Q 2009 amounted to MNOK 6.6, compared to MNOK
3.4 for 3Q 2008. EBITDA for 3Q 2009 amounted to MNOK -4.1, compared
to MNOK -2.0 for 3Q 2008.

The Company presents its 3Q report and gives a project update on 27
October at 11:00 at Hotel Continental, Oslo, and on 28 October at
9:00 at 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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