FINAL AGREEMENT ON CALIDUS ENG. LTD. ACQUISITION EXTENDED S.E. NOTIFICATION

Badger Explorer ASA 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 Friday December 7th 2007. An extended stock exchange notification, compliant with OSE circular 5/2007, including financial accounts for the previous 3 years follows herein. Please find extended stock exchange notification enclosed. 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 51 57 75 21 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. Badger Explorer ASA has the ambition of launching a commercial service in the market late 2008. In addition, the wholly owned Badger Plasma Technology AS subsidiary has an exclusive licence to exploit the patented plasma channel drilling (PCD) technique developed at Britain`s University of Strathclyde. The solution is removing scale and other obstructions in production/injection wells with the aid of sparks generated at high electrical voltages. www.bxpl.com