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Hunter Group ASA AGM Information 2010
3626_rns_2010-04-21_6953b5da-f7ff-41e6-a50d-19eecfa602c9.pdf
AGM Information
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BADGER EXPLORER
Badger Explorer ASA
AGM 2010
Kjell Erik Drevdal – CEO
Stavanger, 21 April 2010
BADGER
Agenda
I. Highlights 2009
II. Badger Explorer
- Rig-less Exploration - a Game Changer
III. Project Update
IV. Calidus Engineering Ltd.
V. Financials
VI. Outlook
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I. Highlights 2009
Main achievements in 2009
- Demo50 redesigned – developed Demo50v2
- Identified proper test-site – located in Eastern part of Norway
- Parallel design and development of 125 Demonstrator
Self burial test program Q4
- Completed and commissioned Demo50v2 tool
- Qualified test site in Norway
- Self burial test program delayed due to severe weather
- Compensatory measures introduced to protect tool and people
Preparing for Pre-Commercial phase in 2010-2011
- Signed strategic vendor agreements
- Design, development and manufacturing of 125 Demonstrator
Financial position remains solid
- 2009 net spending below budget, cash year-end MNOK 141
- Total project development costs MNOK 9.9 in 4Q
- Development program up to commercial launch fully financed
BADGER EXPLORER TECHNOLOGIES
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EXPLORER
I. Highlights Commercialization Plan
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II. 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
BADGER
EXPLORER
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
BADGER
EXPLORER
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 |
| High demand & unique earnings | 50% EBITDA profit target
10-20 MUSD revenue pr. operation
Partners granted 3 years first right of refusal for BXPL full operations capacity |
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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
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EXPLORER
III. Project update
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III. Full-Scale Test, Status April 21st
Experienced delays first three months of 2010 due to extremely low temperatures at test site
- Built and introduced heating elements to cover the tool for protection
The full scale closed cavity testing is ongoing
The current Demo50v2 prototype is constructed with specifications and solutions to;
- Demonstrate self burial functionality only
- But with a complex hydraulic drive and electronic control system
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III. Full-Scale Test, Status April 21st
The current test main purpose is to drill continuously over a certain distance to verify the following;
- The process of pumping water and drill cuttings in a closed loop circulation system
- Separation of drill cuttings and water in a sub-merged system
- Collection of drill cuttings on the compression piston in a sub-merged system
- Compression of cuttings to a firm plug in a sub-merged closed in cavity
Analysis of the results are ongoing on a continuous basis.
This process is not yet stable enough to conclude.
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IV. Calidus Engineering Ltd.
Calidus has become a vital supplier to Badger Explorer ASA
- Per 4Q 2009 deliveries to Badger Explorer accounted for 47% of turnover (46%-2008)
Deliveries consist of design, engineering, testing and prototype manufacturing
Total order backlog satisfactory and growth is expected
Cash position remains strong
| MNOK | 2009 | 2008 |
|---|---|---|
| Gross turnover | 16.9 | 12,4 |
| BXPL turnover | 7.9 | 5,7 |
| Net result | 3.4 | 2.5 |
| Equity ratio | 88 % | 81% |
BADGER® EXPLORER
V. Financials - Cash Position
| MNOK | 31.12. 2008 | 31.12.2009 |
|---|---|---|
| Cash position | 177 | 141 |
| Equity | 212 | 200.5 |
| Equity ratio | 92.2% | 91.1% |
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V. Financials - Shareholder Matters
733 shareholders per 15.02.2010
- 20 largest shareholders hold 70.9%
- Founding investors hold 13.4% (2.4 million shares)
Inventor, founders, management and employees
- Primary insiders hold 25.9% (4.7 million shares)
- 63.6% are Norwegian
14
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VI. Outlook
- Onshore self-burial test is on-going
- Badger Explorer ASA considers a successful self-burial test as proof of the patented concept, which will mark a technological breakthrough
- A successful test will establish the basis for the extended cooperation with the client partners (ExxonMobil, Shell and Statoil)
- Pre-commercial phase 2010/2011 – 125 Demonstrator designed for higher operating temperatures and deeper test depths
- Electrical components with high temp. specifications
- Vendors for sensor and logging packages in place
- Increased operational reliability
- Maturing as a technology company
- Ramp up of operational and commercial capabilities
BADGER EXPLORER
Q&A
BADGER EXPLORER ASA
Rig-less Exploration a Game Changer
www.bxpl.com
Kjell Erik Drevdal, CEO, [email protected], +47 916 43 552
Gunnar Dolven, CFO, [email protected] +47 908 53 168
BADGER® EXPLORER
APPENDIX
BADGER
EXPLORER
20 Largest Shareholders as of 16.02.2010
| Holding | Percentage | Name |
|---|---|---|
| 3,200,780 | 17.36 | CONVEXA CAPITAL IV A |
| 2,694,997 | 14.62 | CREDIT SUISSE SECURI SPECIAL CUSTODY A/C |
| 922,409 | 5.00 | BANK OF NEW YORK MEL BNY GCM CLIENT ACCOU |
| 900,000 | 4.88 | ODIN OFFSHORE |
| 682,946 | 3.70 | IRIS-FORSKNINGSINVES |
| 595,759 | 3.23 | SIX SIS AG 25PCT |
| 562,134 | 3.05 | HOLBERG NORDEN V/HOLBERG FONDSFORVA |
| 493,500 | 2.68 | BANK OF NEW YORK MEL S/A INVESCO PERP EUR |
| 465,407 | 2.52 | AHLQVIST INVEST AS |
| 301,872 | 1.64 | DALVIN RÅDGIVNING AS C/O DOLVEN |
| 267,739 | 1.45 | CREDIT SUISSE SECURI (EUROPE) LTD./FIRMS |
| 248,800 | 1.35 | ANØY INVEST DA |
| 242,600 | 1.32 | ÅM KNUT |
| 236,866 | 1.28 | HOLBERG NORGE V/HOLBERG FONDSFORVA |
| 222,600 | 1.21 | DREVDAL KJELL ERIK |
| 214,000 | 1.16 | CSV II AS |
| 213,200 | 1.16 | MP PENSJON |
| 210,290 | 1.14 | STOKKA SIGMUND |
| 206,000 | 1.12 | J.P. MORGAN BANK LUX S/A LUXEMBOURG MUTUA |
| 200,000 | 1.08 | THE NORTHERN TRUST C TREATY ACCOUNT |
| 13,081,899 | 70.95 |
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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
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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
ExxonMobil
StatoilHydro
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 3 100 units
ExxonMobil StatoilHydro