Badger Explorer ASA - 1Q 2012 Report

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Badger Explorer ASA (‘BXPL’) releases its 1Q 2012 Report today. The Company’s 1Q 2012 investor presentation will take place in Oslo at Hotel Continental on Thursday, 10th May 2012 at 11:00 - 12:30. Light lunch will be served. SR-Markets will host the investor presentation in Stavanger on Friday, 11th May 2012 at 08:00 - 09:30. The presentation will be given at Sparebank1-SR-Banks headquarters at Bjergsted Terasse 1, 4066 Stavanger. Breakfast will be served.

During the first quarter of 2012 Badger Explorer ASA had three focus areas that have been drivers for all efforts within the Company, and which will continue to shape the Company’s activities during the coming year. These are the Badger Explorer Demonstrator Program, the Field Pilot Program and Funding.

Statoil has joined ExxonMobil in sponsoring the Badger Explorer Demonstrator Program which is a three-year sponsor-supported program designed to develop the first commercial version of the tool. The aim is for a simplified and robust solution which generates the flexibility to operate in a wide range of formation types. Technical milestones scheduled over a period from summer 2012 until the end of 2014 will trigger the release of the committed funds.

The Field Pilot Program is designed as a series of demonstrations of Badger technology, each successively more technically challenging than the previous, establishing the basis for subsequent commercial activity. Oil sands drilling and monitoring applications in Canada have been targeted for the first commercial applications. Development work within the Badger Demonstrator program and the first Field Pilot is aligned, such that the specifications required for the Field Pilot are inputs to the Demonstrator Program.

External financing is very important to the development, and the total financing plan comprises sponsors, public grants (Norway and Canada), Field Pilot contract and commercial revenues.

The Badger Explorer Groups gross cash reserves amount to MNOK 31.4 as of 31.03.201 2. Cash flow in 1Q 2012 totaled MNOK -7.6 compared to net change in cash flow of MNOK -1.2 in 1Q 2011. Summarizing the 1Q 2012 financial results for the Badger Explorer Group (including 75%-owned Calidus Engineering Ltd.): Revenues amounted to kNOK 3610 for 1Q 2012 (kNOK 3 058 for 1Q 2011); Operating expenses for 1Q 2012 were        kNOK 7 569 (kNOK 8 290 for 1Q 2011); EBITDA for 1Q 2012 was kNOK -3 959 (kNOK -5 232 for 1Q 2011).

Activities at BXPL are now focused toward developing and delivering the first commercial application, which has also attracted interest from other operating companies in Canada.

Stavanger, 9th May 2012

For further information, please contact:
David W. Blacklaw, CEO, cell phone +47 406 44 010, office +47 52 97 45 50
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40

www.bxpl.com

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