Badger Explorer Concluded Testing onPlasma Channel Drilling Technology

Badger Explorer ASA subsidiary Badger Plasma Technology AS has concluded its Demo2000 test project for the use of the Plasma Channel Drilling technology. In addition other applications have been identified which will be investigated further due to promising results.

"We are pleased with the results achieved during the Demo2000 test program and with the encouraging results from the scale removal tests. Yet, there are remaining challenges, and Badger Explorer will continue to evaluate the commercial viability of the PCD technology and the future strategy for Badger Plasma Technology AS, expected to be concluded within the first quarter of 2009," said CEO Kjell Erik Drevdal of Badger Explorer ASA.

Removing different obstructions in production/injection wells are applications which the PCD technology has been tested for with interesting results. In addition the technology has been tested for various other applications which will be investigated further. The study, however, has concluded that the PCD-technology is not a viable alternative to the current drill bit solution in the Badger Explorer design.

Badger Explorer ASA in November 2006 concluded a license agreement with the University of Strathclyde, Scotland which has developed the Plasma Channel Drilling technology and holds the patent. On the basis of the licence agreement and financial support from the Research Council of Norway`s Demo2000 program, a demonstration project was launched in December 2006. The objective this project was to demonstrate the suitability of PCD for use in drilling for oil and gas under downhole conditions.

The PCD project has been undertaken by Badger Explorer ASA`s wholly-owned subsidiary Badger Plasma Technology AS. An agreement of full financing of the PCD project was concluded by Badger Explorer with Shell Technology Norway and Statoil in April 2007. The Demo2000 test has now been concluded and final project report has been presented to the project steering committee and to the board of Directors of Badger Explorer ASA.

Badger Explorer ASA will continue to assess the PCD technology, yet considerable work remains with regards to fully model and understand the plasma physics and to design robust down-hole tools. Until the future strategy for Badger Plasma Technology AS has been fully revised, Badger Explorer ASA CEO Kjell Erik Drevdal will remain in charge of the subsidiary as acting CEO.


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