QUARTERLY REPORT 3. QUARTER 2006

Transcription

1 QUARTERLY REPORT 3. QUARTER 2006

2 BADGER EXPLORER PROTOTYPE - DEVELOPMENT The Badger Explorer Prototype s path to the commercial market place is progressing according to the original Project plan. There have been substantial testing activities internally and externally at various test locations. The test results are very encouraging. The main focus for the Prototype Project work during 3rd quarter has been the drilling module, drill cuttings transport system and cuttings compaction system. Bore hole-sealing studies and permeability tests have been performed and confirm satisfactory plugging. All tests are performed in full scale to avoid the uncertainty of escalation. Building and testing of a borehole fracturing device is in progress and close discussions with potential suppliers of electrical motor, controller, pumps and gear are ongoing. A Test Jig for full scale testing has been designed, engineered and is ready for manufacturing. Dedicated and secure onshore test area has been identified and rented at IRIS premises in Stavanger. A first full scale simple prototype will be tested onshore in 1Q ORGANIZATION The Badger Explorer Project Organization consists of more than 30 people of which 8 are full time employed in Badger Explorer ASA. The Company s main partners, ExxonMobil, Shell and Statoil, together with several research institutions, universities and industrial partners are closely involved in the Prototype Development Project. Sick leave in the Company is low, per : 0.7% The recruitment process to hire senior personnel is progressing according to plan. MAIN FIGURES Revenues for the third quarter 2006 amounted to knok 135 and to knok 241 as of 30 th of September Operating expenses for the third quarter 2006 amounted to knok and to knok as of 30 th of September EBITDA for the third quarter 2006 amounted to knok and to knok as of 30 th of September Project costs for the Badger Explorer Prototype for the third quarter 2006 amounted to knok 1766 of which knok was capitalized and to as of 30 th of September 2006 of which knok was capitalized. Public grants for the Badger Explorer Prototype for the third quarter 2006 amounted to knok 680 and to knok as of 30 th of September All public grants are capitalized together with the project costs. Earnings per share for the third quarter 2006 amounted to NOK per share and to NOK as of 30 th of September Cash reserves per are MNOK 64.2 Summary Unaudited figures in NOK Q -05 3Q Revenues Operating expenses EBITDA Earnings per share (figures in NOK) Badger Explorer Prototype development costs Public grants for the Badger Explorer Prototype development Capitalization of development costs and public grants Page 2 of 8

3 Badger Explorer ASA 3. quarter 2006 OUTLOOK The Company is entering into a period with continuously high and increasing test activities. Preparation and mobilization of test area for full scale onshore testing with the Test Jig is planned for 4Q -06. A first simple Badger Explorer prototype will be tested in 1Q The test will be performed onshore in full scale. The target for the first commercial Badger Explorer is unchanged, 2H The IPO process has started and listing of Badger Explorer ASA at the Oslo Stock Exchange (Oslo Børs) is planned for 1Q/2Q Stavanger, 26th of October 2006 The board of directors Badger Explorer ASA Hole sealing Page 3 of 8

4 ACCOUNTING POLICIES The financial statement is from this quarter, 3Q 2006, prepared in full accordance with International Financial Reporting Standards (IFRS) and the financial statement has also been prepared in accordance with the International Accounting Standard (IAS) 34. Prior quarter financial statements and opening balances have been translated to comply with IFRS and IAS 34 for comparative purposes. The effect of transfer from NGAAP to IFRS for the applicable periods is presented on page 7. FINANCIAL STATUS P&L Summary Unaudited figures in NOK 1000 Revenues Other Income Public grants Capitalized public grants Total Revenues Operating Expenses External services for dev. project Salary Other Operating Expenses Capitalized project costs Total Operating Expenses EBITDA Depreciation EBIT Net financial items EBT Tax Net profit (loss) 3. Quarter 3. Quarter Note Earnings per share -0,23-0,16-0,31-0,39 1. The Badger Explorer Prototype project is supported by the Norwegian Research Council and "Skattefunn" with a percentage of the total project cost and the calculated amount is accrued consecutively. 2. The cost for the development of Badger Explorer Prototype project is capitalized, subsequently also the grants. 3. Capitalized project development costs in accordance with IFRS standard. Additional project cost not capitalized amounts to 491 knok for the third quarter and knok per Page 4 of 8

5 Balance sheet Unaudited figures in NOK Note ASSETS FIXED ASSETS Development costs Patent rights Sum intangible assets Machinery, furniture and fixtures Sum other fixed assets TOTAL FIXED ASSETS CURRENT ASSETS Accounts receivable - customers Other accounts receivable Sum accounts receivable Cash TOTAL CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Share capital Share premium account Sum paid in equity Other equity Sum Earned equity TOTAL EQUITY LIABILITIES Contribution from Partners Sum long term liabilities Accounts payable Payables to public authorities Other short term liabilities Sum short term liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES Capitalized project development costs in accordance with IFRS standard. Additional project cost not capitalized amounts to knok per Reversed capitalized deferred tax benefit to comply with IFRS standard. The balance has been translated accordingly. Page 5 of 8

6 Cash flow Unaudited figures in NOK Net cash from operating activities Net cash from investments Net cash from financing Net cash flow Cash balance at beginning of period Cash balance at end of period Equity reconciliation Unaudited figures in NOK Equity at beginning of period Net profit (loss) Share issue Equity at end of period MAJOR SHAREHOLDERS SHARES % NAME CONVEXA CAPITAL IV AS RF-FORSKNINGSINVEST PROCOM VENTURE AS BANK OF NEW YORK, BR BNY GCM CLIENT ACC HOLBERG NORDEN VERDIPAPIRFONDET V/HOLBERG FONDSFORV ODIN OFFSHORE ODIN FORVALTNING AS DEUTSCHE BANK AG LONDON S/A PRIME BROKERAGE STOKKA SIGMUND SEB ENSKILDA ASA EGENHANDELSKONTO OLYMPIA HOLDING AS OTHERS TOTAL Page 6 of 8

7 NGAAP VS. IFRS 3. quarter P&L Summary NGAAP Changes Note IFRS NGAAP Changes Note IFRS NGAAP Changes Note IFRS Revenues Other Income , , Public grants Activated public grants Total Revenues Operating Expenses Ext. Serv. for dev. Proj Salary Depreciation Other Operating Expenses Activated project costs Total Operating Expenses EBIT Net financials EBT Tax Net profit Balance sheet ASSETS NGAAP Changes Note IFRS NGAAP Changes Note IFRS NGAAP Changes Note IFRS FIXED ASSETS Development costs , , Patent rights Deferred tax benefit Sum intangible assets Mach. furniture and fixtures Sum other fixed assets TOTAL FIXED ASSETS CURRENT ASSETS Acc. receivable - customers Other accounts receivable Sum accounts receivable Cash TOTAL CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Share capital Share premium account Sum paid in equity Other equity ,2, Sum Earned equity TOTAL EQUITY LIABILITIES Contribution from Partners Sum long term liabilities Accounts payable Payables to public auth Other short term liabilities Sum short term liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIAB Page 7 of Reversed funding from Exxon, Shell and Statoil entered as income. Capitalized 2. Capitalized public grants. 3. Capitalized development costs. 4. Reversed capitalized deferred tax benefit

8 Badger Explorer ASA Org.no MVA Visiting address: Forusbeen 78 Stavanger Postal address: P.O. Box 360, 4067 Stavanger Switchboard: Fax: