Badger Explorer ASA Q1, Kjell Erik Drevdal CEO Gunnar Dolven - CFO

Transcription

1 Badger Explorer ASA Q1, 2010 Kjell Erik Drevdal CEO Gunnar Dolven - CFO Oslo, April 30th, 2010 Stavanger, April 30th, 2010

2 Agenda I. Highlights II. III. IV. Badger Explorer Rig-less Exploration - a Game Changer Project Update Calidus Engineering Ltd. V. Financials VI. Outlook BADGER EXPLORER TECHNOLOGIES

3 Highlights Successful groundbreaking demonstration of the concept Press release issued 28 th of April 2010 Worlds first closed cavity drilling Drilled and plugged for several meters Company considers this as proof of concept Entering Pre-Commercial phase Results presented to client partners this week Financial position remains solid Cash 31 st of March = MNOK 127 Total project development costs MNOK 11.5 in Q1 Development program up to commercial launch fully financed

4 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

5 Project update

6 Full-Scale Test, Status April 30th The main purposes of the test are now fulfilled: To drill continuously under full control and real-time feedback in a closed cavity system to verify the following; - Drilling - Transportation - Separation - Compaction with repetitive cycles over a long time and distance 6

7 Full-Scale Test, Status April 30th The current Demo50v2 prototype is constructed with specifications and solutions to; - Demonstrate self burial functionality - With a complex hydraulic drive and electronic control system

8 II. Badger Explorer - A game changer The Evolution of Exploration for Oil & Gas Yesterday s method: Blow-out and proud of it Today s method: Costly operation to meet required HSE standards Tomorrow s method: Safe, clean and low impact operation 8

9 II. The New Exploration Value Chain Seismic EM Badger Explorer Conventional drilling Cost efficient comprehensive data collection method Suitable for large range of targets exploration, appraisal and brown fields Complementary to seismic and EM Provides detailed formation data and verifies the presence of hydrocarbons

10 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 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

11 IV. Calidus Engineering Ltd. Calidus has become a vital supplier to Badger Explorer ASA MNOK 1Q Q 2009 Deliveries consist of design, engineering, testing and prototype manufacturing Completed large projects end 2009, turnover 1Q 2010 weak Gross turnover BXPL turnover Net result Equity ratio 93.6 % 83.5% Contracts in the pipe line. Norway expanding as a market Cash position remains strong

12 V. Financials Cash Position MNOK Cash position Equity Equity ratio 91.1% 91.4%

13 13 V. Financials - Shareholder Matters 742 shareholders per largest shareholders hold 70.65% Founding investors hold 13.4% (2.4 million shares) Inventor, founders, management and employees Primary insiders hold 25.9% (4.7 million shares) 64.6% Norwegian

14 Outlook Onshore self-burial testing to be continued as a part of the planned further development Bring partners/ customers closer and more active into the further work (ExxonMobil, Shell and Statoil) Develop and build higher spec. versions to achieve deeper depths and higher reliability Develop and build an earth model to simulate and fully model and control Badger Explorer sub-surface behaviour Further build operational and commercial capabilities and partnerships

15 Q&A BADGER EXPLORER ASA Rig-less Exploration a Game Changer Kjell Erik Drevdal, CEO, [email protected], Gunnar Dolven, CFO, [email protected]

16 APPENDIX

17 Badger Explorer The Overall Concept 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

18 20 Largest Shareholders as of

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 2005

20 Badger Explorer 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 Acquired UK engineering company and sub supplier in 2007 Extended agreement with client partners in 2008 Strategic co-operation agreements signed in 2009 April 2010, successful groundbreaking demonstration of concept

21 Badger Explorer: General Update Shell, ExxonMobil and Statoil 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 21