1H 08 - ON-TRACK FOR SELF-BURYING TESTING IN Q3

8/20/2008, 6:28 PM (Source: GlobeNewswire)
Badger Explorer ASA (BXPL) has during 1H 2008 successfully conducted
the first part of its Demo50 full-scale prototype test in Denmark.
Jig-assisted tests have been performed onshore in an area with
relevant geology, showing encouraging results and which verify that
the test site and the prototype unit are well-suited for the
semi-autonomous self burying tests.

The first half of 2008 has also seen the finalization of the extended
partner agreement, which has been signed by ExxonMobil and
StatoilHydro. The agreement involves extensive support from the
partners in the ongoing development phase, covering the period
through to and into commercial operation, expected in 2010. In
return, the partners have secured first right of refusal to buy the
full manufacturing capacity of Badger Explorer at market price for a
period of three years from commercialisation. Finalization with Shell
is expected, but still pending.

The Company is on-track with the development plan for Badger Explorer
with regards to progress, technical development and budget.

Development within BXPL subsidiary Badger Plasma Technology AS has
been brought to a tentatively conclusive phase, resulting in reduced
focus for the coming 3-4 quarters. The additional resources will be
made available to the Badger development program.

From a technical, contractual and commercial point of view important
milestones with regards to the development of Badger Explorer are now
being reached. The outlook for the rest of 2008 is positive, but
challenging. Successful semi-autonomous tests of the Demo50 in
Denmark will be a major technological milestone, however considerable
engineering, systems development, testing and stabilisation will
still be needed for the Demo125, planned for 2009.

BXPL are now proceeding with prototype assembly in order to initiate
testing of the semi-autonomous Demo50 drilling unit within Q3 2008.
Status of these tests will be given in connection with the
presentation of 3Q 2008 results, scheduled for 22 October 2008.

The Badger Explorer Group (includes Calidus Engineering Ltd.) had
revenues of MNOK 1.6 in 2Q 2008 and MNOK 3.6 in 1H 2008, compared
with kNOK 33 in 2Q 2007 and kNOK 183 in 1H 2007. Operating expenses
for 2Q 2008 amounted to MNOK 5.0 and to MNOK 9.5 for 1H 2008,
compared to MNOK 2.9 for 2Q 2007 and MNOK 4.8 for 1H 2007. EBITDA for
2Q 2008 amounted to MNOK -3.4 and to MNOK -5.9 in 1H 2008, compared
to MNOK -2.9 for 2Q 2007 and MNOK -4.6 for 1H 2007. The company's
cash position per 30.06.2008 is MNOK 186. Equity totalling MNOK 212.1
(92.9 %).

For further information, please contact:
Kjell Erik Drevdal, CEO, +47 916 43 552
Gunnar Dolven, CFO, +47 908 53 168

About Badger Explorer ASA
Badger Explorer ASA is developing a revolutionary method for
exploration and verification of oil and gas prospects, called Badger
Explorer. Badger Explorer drills down and buries itself in the
underground, equipped with numerous sensors, which measure and
register vital formation and physical data. The method provides a
substantially lower risk, cost and complex operation compared to
utilising an expensive conventional drilling rig.
The crushed formation cuttings are transported through the tool,
deposited and compressed in the void behind the unit. Potential
excess volume is injected into fractures generated by Badger
Explorer. The unit is connected to a combined power and signal cable
which again is connected to the surface. The unit is powered by
electricity and transmits data signals back to the surface through
the same cable.
In addition, the wholly owned Badger Plasma Technology AS subsidiary
has an exclusive licence to exploit the patented plasma channel
drilling (PCD) technique developed at Britain`s University of
Strathclyde.
www.bxpl.com

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