Q2 07- SEVERAL MILESTONES REACHED, SUCCESSFUL SYSTEMS FUNCTIONS TEST

Badger Explorer ASA reached several milestones in the second quarter 2007. The development, construction and testing of Badger Explorer progresses according to plan with expected test results. In addition the company was listed at the Oslo Axess and successfully carried out a share issue. The company is fully financed and the industry interest for the company`s two developmentprojects, Badger Explorer and Plasma Channel Drilling, is increasing. The development, construction and testing of Badger Explorer progresses according to plan with the expected, positive test results. During the 2Q the full scale onshore systems function test has commenced and although some delays from sub vendors has been experienced a full scale integrated systems function test has been performed. The high level of test activities will continue until the system functions are stabilised and final and conclusive test results are obtained. In addition to the Badger Explorer project, the company has increased its focus towards the Plasma Channel Drilling (PCD) project. Shell and Statoil have committed to participate in a NOK 7.7 million demonstration program of the Plasma Channel Drilling . On June 12th 2007, the Badger Explorer ASA`s shareswere listed at the Oslo Axess - the new authorised regulated market place for pre commercial companiesin Norway. In relation to the IPO there was a new share issue of 5 million shares raising gross NOK 160 million in proceeds. Badger Explorer ASA is still in a project development phase and the company`s figures will reflect this. However, the company has a sound and solid financial position allowing the company to carry out its planned development projects and the following commercialisation activities. As of 30th of June 2007 the Company has a net cash position of NOK 208 million, and an equity ratio of94%. The company had operating profits (EBITDA) in 2Q 2007 of NOK -2.90 million, compared with NOK -0,75 million in the corresponding quarter 2006. Badger Explorer ASA`s result after tax in 2Q 2007 was NOK -1,99 million, compared with a result aftertax of NOK -0,37 million in the corresponding quarter 2006. Earnings per share for 2Q 2007 amounted to NOK -0,128, compared with NOK -0,027 for 2Q 2006. The target for the first commercial Badger Exploreris unchanged, 2H 2008, however the company experience that the tight supply market is becominga challenge in order to meet the original time and cost schedules. Still the oil & gas market continueto develop in favour of Badger Explorer and the demand for such a viable concept with regards to less risk and exposure to personnel offshore, more economic exploration, faster mobilization and a much more environmentally friendly solution is continuously being strengthened. The Plasma Channel Drilling (PCD) technology demonstration project has started and activities will be accelerated in 3Q 2007. The process of hiring a CEO for the Badger Plasma Technology AS isongoing. The hiring of a CEO will accelerate the commercialisation of the PCD technology within different applications and markets. Stavanger, 14 August 2007 For more information, please contact: Kjell Erik Drevdal, CEO, +47 916 43 552 Gunnar Dolven, CFO, +47 908 53 168 See also www.bxpl.com 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. www.bxpl.com Disclaimer: This press release includes statements that may constitute forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond Badger Explorer management`s control. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Althoughwe believe that the expectations reflected in the forward-looking statements are reasonable, we can give no assurance that such expectations will proveto be correct. The forward-looking statements involve risks and uncertainties that affect our operations, financial performance and other factors. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.