Promising Initial Phase of Badger Explorer’s Self-Burial Test

Badger Explorer ASA has completed the initial phase of the full scale testing of the Badger Explorer drilling tool with promising results. The pioneering work of this phase involves comprehensive verifications and valuable adjustments. Due to the need for documentation and to ensure the success of the pioneering efforts during the initial phase, the ongoing full scale self-burial testing will stretch into January 2010. A successful self-burial will be a proof of the patented Badger Explorer technology. Throughout 2009 Badger Explorer ASA has worked towards the completion of the prototype phase and the next milestone - the full scale self-burial test. In addition to development and improvements of the drilling tool extensive efforts have been made to identify and find a suitable location for the testing of the full scale prototype of the Badger Explorer. The test site is established and the work of the previous months has yielded results that support an optimistic view on the upcoming self-burial test. In order to ensure positive self-burial test results, several start-up holes will be drilled during the coming weeks. Launch and compaction tubes that provide the drilling tool with a starting position are installed. This is a value adding element and the experience gained will provide input for the development of a similar solution for the use in future seabed operations of the tool. “We have chosen to extend the testing by pre-drilling several 13-15 meter wells and to prepare these with launch and compaction tubes. In addition to providing relevant operational experience, this is carried out because of the force generated by the compaction module which requires anchoring and counterweight. This is important because it confirms the tool’s capabilities and the concept’s ability as indicated through previous tests”, says Kjell Erik Drevdal, CEO of Badger Explorer ASA. “We have had significant progress over the past months. However it has been time consuming to carry out the mobilization, technical adjustments and verification of processes and functionalities. The adjustments we have made will strengthen our ability to carry out a successful self-burial test. I consider the self-burial as the end of the prototype phase and the transition into the pre-commercial phase.” Kjell Erik Drevdal concludes. The Badger Explorer is a revolutionary new method/device for detailed mapping of oil and gas reserves at a substantially lower risk, cost and complexity than utilizing an expensive drilling rig. Compared to the existing exploration methods the Badger Explorer will also lower the risk of environmental pollution and will greatly reduce the disturbances commonly associated with exploration activities. The Badger Explorer project arose great attention from oil companies and the oil service industry. The Company has entered into partner agreements with the oil companies ExxonMobil, Shell and Statoil. The prototype version (previously known as the Demo50) is a robotic electro/hydraulic prototype tool that is steered by a PC based SCADA system via a 50 meter cable. All primary functions are tested and verified. The Badger Explorer project is fully financed until its commercialization including the technical, operational and financial assistance from client partners. The activity level of the markets Badger Explorer aims to serve is high and the Company experiences significant interest in the concept. Combined with the anticipated test results Badger Explorer is looking forward to 2010 - an eventful year for the Company with a high activity level, further development and improvement of the Badger Explorer drilling tool and preparations for the commercial launch of services. For further information, please contact: Kjell Erik Drevdal, CEO, Badger Explorer ASA, office +47 529 74515, mob + 47 916 43552 Gunnar Dolven, CFO, Badger Explorer ASA, office +47 529 74540, mob +47 908 53168 www.bxpl.com