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

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