Norway: Badger Explorer Announces Full Year 2010 Results

In 2010 BXPL’s main task was performing a closed cavity test and demonstrating the Badger Explorer concept in full scale. Successful tests took place at the test site in Eastern Norway leading to the approval of Milestone 2 by the three sponsoring parties (ExxonMobil, Shell and Statoil) on 7 December 2010.

The Company is now preparing for the pre-commercial phase.

During 4Q 2010 Badger Explorer ASA has focused on the identification of a proper local clay/shale test site for the completion of step one of Milestone 3 of the prototype phase. Milestone 3 consists of two different tasks – (i) drilling and compaction operations in a clay/shale formation and (ii) burial of the complete tool in open hole/formation at the test site at Brumunddal.

Jig-based drilling tests in clay/shale have been conducted and will be followed by drilling and compaction operations with the complete Badger Explorer tool in a closed cavity. Mobilization for the Brumunddal test will take place mid March 2010.

BXPL has in parallel continued the development and building work on the Demo125 pre-commercial version. Furthermore several meetings with the sponsoring partners (ExxonMobil, Shell and Statoil) and potential new sponsors to secure support and funds for the pre-commercial phase have taken place.

The Badger Explorer Group’s gross cash reserves as of 31 December 2010 amount to MNOK 98.5 (including shares in a market based liquidity fund). The Badger Explorer Group (includes 50% owned Calidus Engineering Ltd.) had revenues for 4Q 2010 amounting to kNOK 5 729 and as of 31 December 2010 amounting to kNOK 12 056 (compared to kNOK 2 087 for 4Q 2009 and kNOK 8 978 as of 31 December 2009). Operating expenses amounted to kNOK 10 699 for 4Q 2010 and amounted to kNOK 30 634 as of 31 December 2010 (compared to kNOK 8 129 for 4Q 2009 and to kNOK 24 662 as of 31 December 2009), while the EBITDA for 4Q 2010 amounted to kNOK –4 970 and to kNOK -18 578 as of 31 December 2010 (compared to kNOK –6 042 for 4Q 2009 and to kNOK –15 685 as of 31 December 2009).

Based on the achieved results, the received approval by the sponsoring oil companies during 2010 and the overall technical progress of the project, BXPL increases its optimistic view on the market opportunities for its technology and applications.

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Source:Badger Explorer, February  23, 2011;