ENTERS INTO FINAL AGREEMENT ON CALIDUS ENGINEERING LTD. ACQUISITION

Badger Explorer ASA has today, Friday December 7th 2007, entered into final agreement on the acquisition of a controlling 50 percent stake in Calidus Engineering Ltd. for a total consideration of NOK 8.5 million. On November 9th 2007, Badger Explorer ASA announced the acquisition of a controlling stake in Calidus Engineering Ltd, a UK based oil & gas engineering company. The transaction was contingent upon satisfactory legal and financial due diligence, and board approval. All conditions are now lifted. Through the acquisition Badger Explorer ASA will gain control over and secure access to vital engineering capacity for the ongoing development of the Badger Explorer technology. Badger Explorer ASA will within three market days, at the latest, disclose an extended stock exchange notification, compliant with the regulations set forth by the Oslo Stock Exchange circular 7/2007, section 3.4. For further information, please contact: Kjell Erik Drevdal, president and CEO, Badger Explorer ASA, tel +47 51 57 75 10 Gunnar Dolven, CFO, Badger Explorer ASA, tel +47 908 53 168