Badger Explorer ASA 1Q 2009 PRESENTATION

Transcription

1 Badger Explorer ASA 1Q 2009 PRESENTATION CEO Kjell Erik Drevdal CFO Gunnar Dolven Oslo, 14 May 2009 Stavanger, 15 May

2 Agenda 1Q 2009 results presentation I. Main events II. III. IV. Badger Explorer A Game Changing Technology Badger Explorer Project Update and Further Plans Calidus Engineering Ltd. V. Financials VI. Outlook 2

3 I. Main events 1Q Badger Explorer technologies Project progress in line with plan Parallel focus on DEMO50 #2 and DEMO125 Specialist groups in place positive results Continuous improvements Self burying test program summer 2009 Industry partners with firm support Planning of extensive test programs initiated Strong partner support and backing CAPEX ramp up during 2009 Higher activity level Expanding organisation Gross spending below budget Continued strong financial position 3

4 I. Main events 1Q Badger Explorer history and development plan Idea phase Maturing phase Prototype project phase Commercialization phase First commercial Badger Explorer in operation Activity level/ Magnitude of development Idea born Patent awarded Patent application Company registered Proof of patent completed Partner financing contracts signed Feasibility study completed Project kick-off Petromaks application approved Testing of full scale DEMO125 prototype completed Testing of full scale DEMO50 prototype onshore completed Building of full scale DEMO50 prototype completed Testing of simple prototype onshore completed Building of simple prototype completed Testing of full scale modules completed Design of full scale modules completed Start extensive pilot testing of full scale PILOT125 units Building of full scale DEMO125 prototype completed OTC listed 3rd equity raising complete Milestone #1 approved by partners DnB NOR national Innovation award 2nd Development Project mobilization Today IPO / OSE listing PCD Project financed PCD licenses awarded US patent awarded Extended partner agreement signed

5 II. Badger Explorer A Game Changer The evolution of Exploration for Oil & Gas Yesterday s method Today s method Tomorrow s method Blow-out, and proud of it Costly operation to meet required HSE standards Safe, clean and low impact operation 5

6 II. Badger Explorer A Game Changer Outperform 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 requirement Top tier partners & team 200 years+ of operational experience ExxonMobil, Shell and StatoilHydro 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 6

7 III. Badger Explorer Project Update Status and 1Q focus 2008 test program provided valuable experience Developed and built a full scale DEMO50 prototype Focus on adjustments and system improvements 1H 2009 building Demo50 #2 Designing Demo125 ( ) 7

8 III. Badger Explorer Project Update Specialist groups Two specialist groups established Compaction functionality Fluid/particle separation functionality New design concepts Redesign hydraulic system Redesign electronic control system Primary solutions for Demo50 #2 chosen 8

9 III. Badger Explorer Project Update Summer 2009 DEMO 50 test New DEMO50#2 sub-terranean burial test planned Test sites identified in Norway and Europe Rock samples for pre-test drilling received from all test sites to assess solution suitability Pre-test drilling tests performed in Norway Test site qualification performed Test operations under planning 9

10 III. Badger Explorer Project Update Further Plans 2009 DEMO50 #2 test expected to provide valuable results Further adjustments must be expected Possible further DEMO50 versions to be tested during 2H 2009 Gradually more focus on DEMO125 Many functions from Demo50 #2 implemented in Demo125 design. Calidus major contributor 10

11 III. Badger Explorer Project Update Badger Explorer technologies Maturing as a technology company Benefits and effects of multi-disciplined research and engineering resource base Competence compounded through skilled personnel and high-tech challenges Valuable data and experience acquired through project Added commercial potential Extended BXPL services Plasma based services IP securing Calidus growth Market development may contribute with more accessible competence and capacity at favourable terms Increased attention from operators and authorities globally Developing Badger Explorer remain first priority

12 IV. Calidus Engineering Ltd. Positive start of 2009 Growth expected to continue during the year Important Badger Explorer deliveries High-tech capacity and competence (MNOK) Q Q Gross turnover BXPL turnover Net result Equity ratio 86% 81% 81% Highly competent resources High-tech geothermal capabilities Strong engineering and design competence Manufacturing capacity and testing facilities Major customers both in UK and Norway More than 20 employees Falmouth

13 V. Financials Income Statement Unaudited figures in NOK Q Q 2008 Note Revenues Other Income Public grants Capitalised public grants Total Revenues Operating Expenses Cost of goods sold External services for dev. project Salary Other Operating Expenses Capitalised development cost Total Operating Expenses , EBITDA Depreciation EBIT Net financial income EBT Tax Net profit/loss from operations Profit (loss) attributable to minority interests Profit (loss) attributable to equity holders of the parent , Earnings per share -0,113-0,005-0,113-0,005 Earnings per share diluted -0,113-0,005-0,113-0,005

14 V. Financials Balance sheet ASSETS FIXED ASSETS Development costs Patent rights Notes Goodwill Total intangible assets Machinery, fixtures, etc. Total tangible assets Bank bonds Sum financial assets TOTAL NON-CURRENT ASSETS CURRENT ASSETS Inventory Sum Inventory Accounts receivable Other receivables Total receivables Cash and cash equivalents TOTAL CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Notes Share capital Share premium reserve ,5,11 Other paid in equity ,6 Total paid in equity Other equity Total retained earnings Minority Interest TOTAL EQUITY LIABILITIES Capitalised grants Total long term liabilities Accounts payable Public duties payable Taxes payable Other short term liabilities Total short term liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES ,

15 V. Financials Cash position (MNOK) Cash position Equity Equity ratio % % (MNOK) Cash position/forecast Gross spending Gross spending 1Q below budget

16 New Board of Directors Board members New Board of Directors in place as per Rolf Ahlqvist (chairman) Christian Bull Eriksson Kristine Holm Bjørge Gretland Tone Kvåle 16

17 Shareholder matters Shareholders Shareholder statistics 611 shareholders 20 largest hold 80.7% 63.2% Norwegian Founding Investors Inventor Founders Management Employees hold all together approx 4.1 million shares (22.3%) Primary insiders 4.3 million shares (23.5 %) 17

18 VI. Outlook Badger Explorer technologies Full continued momentum 2009 Completion and stabilization of Demo50 #2 prototype Sub-terranean burial test commence summer 2009, 3-6 month duration Full focus on pre-commercial Badger Explorer in 2009 Development and testing of Demo125 Partner contributions Future market communication to focus on commercialization issues, less technical details Continued Calidus expansion Other services derived from BXPL development Commercial services planned for late

19 Thank you for listening, welcome back H1 PRESENTATION 27/08/09 Breaking New Ground Kjell Erik Drevdal, CEO, ( ) Gunnar Dolven, CFO, ( )

20 APPENDIX 20

21 The Overall Concept Badger Explorer technologies Badger Explorer, an autonomous drilling machine, a rigless 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 21

22 Industry Statement Badger Explorer technologies "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 2005

23 The New Exploration Value Chain Badger Explorer technologies Seismic EM Badger Explorer Conventional drilling Used for 100% of prospects Currently low market penetration but expected to grow The most cost efficient comprehensive data collection method Currently the only available drilling technology Only identifies potential traps, unable to identify the presence of hydrocarbons Covers large areas at a relatively low cost Claimed to be suitable for 70-90% of targets. Problems with resistors such as volcanic stone, coal beds and salt layers 90% correct hydrocarbon identification rate claimed Suitable for large range of targets (exploration, appraisal + brown fields) Complementary to seismic and EM Provides detailed formation data and verifies the presence of hydrocarbons Up to USD 700 million rig and 120 man crew required to drill a well Tight supply market with all time high day rates Exploration wells are rarely used for production Most value in development drilling

24 Largest Shareholders per 13 May 2009 Owner structure Shares % 17,36 Shareholder CONVEXA CAPITAL IV A ,65 10,06 6,05 5,29 5,00 3,80 3,55 3,05 2,47 1,64 1,63 1,32 1,28 1,21 1,19 1,16 1,16 0,92 0,89 80,68 IRIS-FORSKNINGSINVES DEUTSCHE BANK AG LON S/A PRIME BROKERAGE CREDIT SUISSE SECURI (EUROPE) LTD./FIRMS BANK OF NEW YORK MEL BNY GCM CLIENT ACCS BANK OF NEW YORK MEL BNY GCM CLIENT ACCOU ODIN OFFSHORE SIX SIS AG 25PCT HOLBERG NORDEN V/HOLBERG FONDSFORVA AHLQVIST INVEST AS DALVIN RÅDGIVNING AS C/O DOLVEN RBC DEXIA INVESTOR S S/A OLYMPIA HOLDING ÅM KNUT HOLBERG NORGE V/HOLBERG FONDSFORVA DREVDAL KJELL ERIK STOKKA SIGMUND CSV II AS MP PENSJON BANK OF NEW YORK MEL S/A INVESCO PERP EUR JP MORGAN CHASE BANK NON TREATY AC -

25 Badger Explorer Project Update Extended Partner Agreement revisited Shell, ExxonMobil and StatoilHydro firmly committed Agreement addendum signed by all partners Extended agreements, with first right of commercial utilization Comprehensive operational and technical support Partners awarded full manufacturing/operations capacity three first years Sales at market price Secures BXPL full development, testing and commercialization support Access to technology, platforms, vessels, geo-data, expertise staff etc. Estimated manufacturing volumes Year 1 4 units Year 2 20 units Year units 25

26 Badger Explorer Project Update Commercial target 2010 Successful Prototype Test Date =? Successful Prototype test Declaration Of commercial Product Date =? BXPL Declaration of commercial phase R&D projects (Prototype development) Pilot projects (Technology qualification) Demo 50 Demo 125 Pilots 125 Pre commercial 125 Supporting partners; prototype + additional support during qualification ExxonMobil, Shell & StatoilHydro Pre-commercial preperation phase Priority customers (first users) ExxonMobil, Shell & StatoilHydro Commercial projects (Product sales and delivery) T= x T= y Time (T) scale Years 26