Badger Explorer ASA 3Q Kjell Erik Drevdal CEO Oslo, 21 October 2010 Gunnar Dolven CFO Stavanger, 22 October 2010

Transcription

1 Badger Explorer ASA 3Q 2010 Kjell Erik Drevdal CEO Oslo, 21 October 2010 Gunnar Dolven CFO Stavanger, 22 October 2010

2 Agenda I. Highlights 3Q2010 II. Badger Explorer Rig-Less Exploration A Game Changer III. Project Update IV. Calidus Engineering Ltd. V. Financials VI. Outlook 2

3 I. Highlight A new successful demonstration of the concept The tool drilled, processed drilling fluid and compacted solids into a plug below ground level and fully submerged under water Development work ongoing Continuous improvements of functions of the tool Efforts to prepare future versions and new, related applications Financial position Cash as of : MNOK 103.3, equity MNOK (90.9%) 3

4 II. Badger Explorer Overall Concept An autonomous drilling machine, a rig less fly by wire exploration tool Drills into the underground and buries itself Slim electrically powered drilling system Carries sensors, which continuously records data Non-reusable exploration tool that remains in the underground Consists of the following main functions: Drill bit driven by an electro-motor and gear Cutting transport, separation, deposition, compression and fracture injection device Spooled cable, through which power is supplied to the tool and data transferred to surface Developed through use of proven technology and proprietary solutions 4

5 II. Badger Explorer A Game Changer Revolutionary Technology 75% lower cost vs. current methods Higher data quality and volume Faster mobilisation and data collection Environmental Superior Zero emission to sea and air Market demands cleaner operations Increased governmental focus and requirements Top Tier Partners & Team 200 years+ of operational experience ExxonMobil, Shell and Statoil as partners Partner contribution: funding, expertise, operational support and prospective sales Exploration to replace reserves High Demand & Unique Earnings 50% EBITDA profit target MUSD revenue pr. operation Partners granted 3 years first right of refusal for BXPL full operations capacity 5

6 III. Project Update The main purposes of the recently concluded test at Brumunddal were To drill with the Badger Explorer below ground level and under water continuously over several hours build a solid plug demonstrate the concept in an open hole. 8

7 III. Project Update Another successful demonstration of the tool (15 17 October 2010) Functions are improved, adjusted and fine tuned since last test in April 2010 Intensive surface testing has been conducted in 3Q 2010 Badger Explorer was launched into the well and operated for several hours below ground level During the whole operation, the tool was fully submerged under water The tool was drilling, processing the drilling fluid and compacting solids into a solid plug below the ground level, with the full process being conducted submerged under water for the first time ever 7

8 III. Project Update 8

9 IV. Calidus Engineering Ltd. Business volume somewhat weak in 2010 Cash position remains strong Increasing number of customers besides BXPL High activity level for 2H 2010 and beginning of 2011 as Calidus has been awarded with large contracts in 3Q 2010 MNOK 3Q H Q 2009 Gross turnover BXPL turnover Net result Equity ratio % 92.4% 87.9% 9

10 V. Financials, BXPL Group MNOK Cash position Equity Equity ratio 90.9% 91.7% 91.1% 10

11 V. Financials Shareholder Matters 764 shareholders as of largest shareholders hold 71.06% Founding investors hold 12.7% (2.3 million shares) Inventor, founders, management and employees Primary insiders hold 8.2% (1.5 million shares) 64.7% Norwegian Employee share option program (September 2009) consisting of share options (equivalent to 2.2%) 11

12 VI. Outlook Retrieval of the Badger Explorer Thorough and deep analysing of data and detailed inspection of the tool Conclude, report and plan next step Meeting and negotiations with the partners to agree upon further program and secure partner and public support Gradually commencing pre-commercial phase Develop and build higher specification versions through a set of activities Achieve greater depths and higher reliability Testing in a wider range of formations Develop and build an earth model to simulate, fully model and control Badger Explorer sub-surface behaviour Further build operational and commercial capabilities and partnerships 12

13 BADGER EXPLORER ASA Rig-less Exploration - A Game Changer Kjell Erik Drevdal, CEO, ked@bxpl.com, Gunnar Dolven, CFO, gdo@bxpl.com,

14 II. Badger Explorer ASAs History Company established in Stavanger, Norway in 2003 Based on research and patented idea by IRIS Prototype development agreement with client partners in 2005 ExxonMobil, Shell and Statoil Listed on Oslo Axess in 2007 Total equity raised to date MNOK 235 Extended agreement with client partners Statoil, ExxonMobil and Shell in 2008 Strategic industrial co-operation agreements signed in 2009 Groundbreaking demonstration of concept in April

15 BXPL Consolidated Income Statement 15

16 Consolidated Statement of Financial Position 16

17 BXPL s 20 Largest Shareholders as of

18 Highlights Commercialization Plan Successful Prototype Test Declaration Of commercial Product Prototype phase Pre-commercial phase Commercial sales Prototype Demo 50 Demo 125 development Pre-commercial 125 pilots (Technology qualification) Sale and delivery of commercial services Supporting partners; prototype + additional support during qualification ExxonMobil, Shell & Statoil Priority customers (first users) ExxonMobil, Shell & Statoil Years 18

19 Industry Statement "We consider the Badger Explorer to be a potential Game Changer in exploring for hydrocarbons. If research efforts and commercial implementation are successful, the Badger Explorer should help increase the success rate for discovery of oil and gas resources while reducing the environmental impact of the exploration process." Statement from industry partners