Hunter Group ASA

Earnings Release • Nov 2, 2016

Badger Explorer ASA - Q3 2016 Report

Badger Explorer ASA - Q3 2016 Report

Badger Explorer ASA (BXPL) releases its Q3 2016 Report today. The Company's Q3

2016 investor presentation can be accessed via dial-in teleconference on

Thursday, 3rd November 2016 at 08:30 - 09:30 CET. For participation please dial

+47 21 98 42 00 and enter the access code 24 06 16 04. For alternative dial-in

numbers, please visit www.globafy.com/free-conference-call/

During Q3, BXPL has completed the first phase of a project regarding Ultrasonic

-Assisted Compaction and Associated Enabling Technologies at the University of

Glasgow. The project is co-funded by BXPL and the Oil and Gas Innovation Centre

in the UK. This phase of the project delivered promising results regarding the

use of cutting edge piezo-electric materials for transducer design used in the

compaction process. The research into a key enabling technology for successful

compaction will continue in Q4.

The negotiations with CNPC-DR are ongoing. Even though the process is taking

longer than anticipated, CNPC-DR has - as reported in Q1 - confirmed their

intention to join the Badger Explorer Development Program.

Partnership dialogues with international oilfield service companies are still

ongoing. The current weak business climate is however impacting their ability to

start new projects.

Any such partnership would positively impact BXPL by accelerating technical

advancement of the tool and contributing to a successful market introduction.

BXPL is confident that such partnerships will be an important part of the future

development activities.

While working closely with existing Oil Company sponsors and providers of

research and innovation program funding, BXPL continues its work to secure

sufficient funding for the remaining part of the Development Program.

The Company has continued to keep expenses for Q3 2016 at a low level.

Summarizing the Q3 2016 financial results for BXPL:

· Revenues for Q3 2016 were NOK 5,000 and NOK 46,600 as of 30th September

2016, compared to NOK 0.00 for Q3 2015 and NOK 0.00 as of 30th September 2015.

· Operating expenses for Q3 2016 were NOK 1.466 million and NOK 4.476 million

as of 30th September 2016, compared to NOK 3.647 million for Q3 2015 and NOK

11.197 million as of 30th September 2015.

· EBITDA for Q3 2016 was NOK -1.461 million and NOK -4.429 million as of 30th

September 2016, compared to NOK -3.647 million for Q3 2015 and NOK -11.197

million as of 30th September 2015.

· The cash position at BXPL was NOK 327,222 as of 30th September 2016,

compared to NOK 1.091 million as of 30th September 2015.

The work to develop and qualify solutions for the Development Program is ongoing

with a steady progress reducing the technical risk level.

The Badger team continues its work to secure sufficient funding for the

remaining part of the Development Program.

The following documents are attached: Q3 2016 Report and Q3 2016 Investor

Presentation.

Stavanger, 2nd November 2016

For further information, please contact:

Roald Valen, CEO, cell phone +47 938 31 301

Gunnar Dolven, CFO, cell phone +47 908 53 168

www.bxpl.com