1Q 2009 Report - MOBILISATION FOR THE COMING 3-6 MONTH DRILLING TEST PERIOD

5/13/2009, 7:43 PM (Source: GlobeNewswire)
Badger Explorer ASA has during 1Q 2009 made further important and
valuable progress and the project development is in line with the
overall plan. The target for the company is to have a commercial
service available for late 2010. Preparations are well underway for
the next phase of the Demo50 test program which is planned to
commence June/July 2009, lasting 3-6 months. The ultimate purpose of
this program will be to test the self-burying capabilities of the
tool.

"I'm pleased to see that the project development progresses well and
to see the results of the efforts our organisation has put into the
project. Our short term focus is on the upcoming test of the self
burying capabilities of the tool. Independent of the results from
this test, we maintain focus at and optimism towards the long term
goal of having a commercial service late 2010", says President and
CEO, Kjell Erik Drevdal.

During the spring 2009 specific attention has been given to
improvement of cuttings separation, transport and compaction
functionality. Through the establishment of two internal specialist
groups, one focusing on cuttings separation, the other on compaction,
the company has taken important steps towards the company's short
term goal of completing a successful self burying test. In parallel
the development of the Demo125 version, the next generation Badger
tool, is ongoing.

Badger Explorer ASA has retained its solid financial position which
provides grounds for a further ramp up of activities and also
expanding the organisation in line with what has been previously
communicated. As of 31 March 2009 the Badger Explorer Group has a net
equity of MNOK 210.1, equivalent to an equity ratio of 92.0 %. Net
cash position was MNOK 92.4 . In addition the company holds MNOK 79.0
in bank bonds. Combined with the partner agreements with ExxonMobil,
StatoilHydro and Shell, this is considered to be sufficient to
finance the company through to a commercial stage.

The Badger Explorer Group (includes 50% owned subsidiary Calidus
Engineering Ltd.) had revenues of MNOK 2.5 in the first quarter of
2009, compared with MNOK 1.9 in corresponding period 2008. Operating
expenses for 1Q 2009 amounted to MNOK 5.2, compared with MNOK 4.4 for
1Q 2008. EBITDA for 1Q 2009 amounted to MNOK -2.7, compared with MNOK
-2.4 for 1Q 2008.

The company presents its 1Q report and gives a project update, 14 May
at 11:00, Hotel Continental, Oslo, and 15 May at 11:00 in the
company's offices in Stavanger.

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
cable.
www.bxpl.com


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