SUCCESSFUL NOK 160 MILLION IPO EQUITY OFFERING IN BADGER EXPLORER ASA

The Board of Directors of Badger Explorer ASA resolved on 7 June an IPO of 5,000,000 new shares each at NOK 32. The IPO was over-subscribed and proceeds from the offering amounted to mNOK 160. The company has strengthened the Balance Sheet significantly with a net cash position above mNOK 200. The Board of Directors expects the company to be fully funded to develop and commercialise both the Badger Explorer and the electrical based PCD technology. Following completion of the offering, the company will have 18,439,040 shares outstanding at par value NOK 0.125. Market capitalisation will be NOK 590 million based on transaction price. The Managers together with The Board of Directors also decided to fully utilise the over-allotment facility `green shoe` of 500,000 shares. As a result of this green-shoe, there will be a stabilisation period going forward that may last up to 30 days. The current shareholders chose not to sell any shares in the transaction and have also undertaken not to sell any shares without approval from the managers in the coming 9 months lock-up period. The proceeds will be used to accelerate market introduction through the building of additional prototypes, intensify the test program and acquire or build assembly capacity. Rolf E. Ahlqvist , Chairman of the Board, commented: `The Board is very satisfied with the IPO and especially the interest for the company among larger, international investors. Based on the positive results obtained so far in the current ongoing systems function tests, the board is highly optimistic with regard to the final development of the Badger Explorer technology. In addition, the company is now also in a position to fully commercialise the Plasma Channel Drilling technology. This promising electrical drilling method may be used for scale removal from oil pipes.` Badger Explorer ASA shares will be listed on Oslo Axess and first day of trading will be on 12. June. Carnegie ASA and SEB Enskilda ASA acted as joint lead managers for the IPO. For further enquires, please contact Kjell Erik Drevdal, CEO, +47 916 43 552 Rolf E. Ahlqvist, COB, +47 915 47 605 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. 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. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give no assurance that such expectations will prove to 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.