3Q 2009 results

Badger Explorer ASA develops a drilling tool with the potential to revolutionise the exploration of oil and gas resources. The Company is currently in the phase of conducting a full scale self-burial test of the tool. Several test locations have been explored and a suitable test site has been chosen. The preparation process around this self-burial test has started. The Company's activities during the third quarter have been focused on the assembly of the Badger Explorer Prototype tool, the Demo50 version2, and the modelling of the Badger Explorer's main processes. In addition full scale testing of the redesigned separation/compaction module has successfully taken place. Throughout the third quarter the Company has signed important strategic vendor agreements as well as having taken organisational steps in order to prepare for the commercial phase. The positive development is expected to materialise further in the fourth quarter of 2009. "We plan for the initial testing of the Prototype tool, the Demo50 version2, to take place in the fourth quarter and it's the Company's goal to perform the onshore self-burial test before the end of 2009. A successful self-burial test will proof the patented concept and will mark a technological breakthrough which establishes the basis for a defined cooperation with the client partners as well as being a stepping-stone towards the launch of commercial services. We therefore enter into yet another very exciting period for Badger Explorer ASA", says President and CEO, Kjell Erik Drevdal. Badger Explorer ASA holds a 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 30 September 2009 the Badger Explorer Group has a net equity of MNOK 205.1, equivalent to an equity ratio of 91.8 %. In 2009 the net spending is so far in accordance with the budget and the gross cash position is estimated to amount to MNOK 133 by 31.12.2009. Combined with the partner agreements with the oil majors ExxonMobil, Shell and StatoilHydro this is considered to be sufficient to finance the Company until its commercial stage. The Badger Explorer Group (includes Calidus Engineering Ltd.) had revenues of MNOK 2.4 in 3Q 2009, compared to MNOK 1.3 in 3Q 2008. Operating expenses for 3Q 2009 amounted to MNOK 6.6, compared to MNOK 3.4 for 3Q 2008. EBITDA for 3Q 2009 amounted to MNOK -4.1, compared to MNOK -2.0 for 3Q 2008. The Company presents its 3Q report and gives a project update on 27 October at 11:00 at Hotel Continental, Oslo, and on 28 October at 9:00 at 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