10/23/2008, 8:05 AM (Source: GlobeNewswire)
The first self-burying operation of the Badger Explorer Demo50
version is currently being tested in Denmark. The company has not
experienced any technological set backs with regards to the concept.
The test project is however progressing slower than anticipated due
to operational challenges like weather and test site conditions. The
main functions have been verified and computer controlled drilling
has been performed. Subsurface compaction has not yet been tested,
but will be undertaken shortly. Going forward, focus will be on
improvements of the drilling tool through extensive testing.

The Badger Explorer development program is fully financed. Badger
Explorer ASA raised equity of altogether MNOK 235 in 2005 and 2007.
In addition, the extended partner agreements with StatoilHydro and
ExxonMobil were signed in April 2008. The company's financial
strength and these partnerships allow for full focus on completing
the development program as scheduled.

Gross spending is below budget as of 30.09.2008 and cash position is
stronger than forecasted.

As of 30th September 2008 the Badger Explorer Group has a net equity
of MNOK 213 , equivalent to an equity ratio of 92.2 %. Net cash
position is MNOK 185 . Combined with the extended partner agreements
this is regarded to be sufficient cash to reach a commercial stage.

The company will during 4Q continue its test program in Denmark and
during repetitive tests focus on stabilisation and harmonisation of
and between various functions including preparations for the next
version - a Demo125 unit. This unit will be built to take sub-surface
temperatures up to 125 degrees Celsius. Such a tool will undergo
tests on far greater depths, and these tests are planned to be
performed throughout 2009.

The company's development program is in line with the communicated

The Badger Explorer Group (includes Calidus Engineering Ltd.) had
revenues of MNOK 1.3 in 3Q 2008, compared with kNOK 22 in 3Q 2007.
Operating expenses for 3Q 2008 amounted to MNOK 3.4, compared with
MNOK 2.2 for 3Q 2007. EBITDA for 3Q 2008 amounted to MNOK -2.0,
compared with MNOK -2.2 for 3Q 2007.

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 to the surface through the

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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