Hunter Group ASA

Earnings Release • May 25, 2016

Badger Explorer ASA - Q1 2016 Report

Badger Explorer ASA - Q1 2016 Report

Badger Explorer ASA (BXPL) releases its Q1 2016 Report today. The Company's Q1

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

Thursday, 26th May 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/

On 16 March 2016, Statoil approved the second key deliverable of Milestone 1 of

the Badger Explorer Development Program; function testing and verification of a

cuttings transport system developed in conjunction with Honeybee Robotics (US).

The function test shows that Badger Explorer has found a viable solution for one

of the main challenges with the Badger concept, and the final milestone in the

Development Program will contain long term tests of the system.

The first part of Milestone 1, qualification of high power High Pressure High

Temperature [HPHT] Transducers for the drilling and compaction systems in the

Badger Explorer, was completed in Q4 2015. Employing cutting edge technology,

the transducers represent a significant step in the development of compaction

and drilling systems for Badger Explorer tools. Going forward, the transducers

will be used in compaction experiments at the University of Glasgow to

characterize the compaction efficiency under HPHT conditions.

Expenses for Q1 2016 have been kept low, however key technical results have been

delivered. The Company moved into new facilities at IRIS in Stavanger March

2016, giving access to world class research and test facilities.

Summarizing the Q1 2016 financial results for BXPL:

No revenue was recognized as the Company is in a product development phase and

currently generates losses. Operating expenses for the first quarter ended March

2016 amounted to NOK 1.698 million, compared to NOK 4.035 million for the first

quarter ended March 2015. BXPL's total comprehensive income shows a net loss of

NOK -1.855 million in the first quarter of 2016, compared to NOK -4.196 million

in the first quarter of 2015. Cash and cash equivalents were NOK 328,801 as of

31 March 2016, compared to NOK 1.082 million as of 31 March 2015. Shareholder's

equity for BXPL was NOK 64.032 million as of 31 March 2016, with an equity ratio

of 41.4%, compared to NOK 74.925 million as of 31 March 2015 (equity ratio of

48.9%).

Successful function testing of the cuttings transport system and qualification

of ultrasonic transducers are important steps towards a commercial Badger tool.

In 2016, BXPL will continue to develop and qualify solutions for the main

challenges with the Badger concept.

The negotiations with oil company sponsors are on-going and will be completed as

soon as possible. Funding of operations in 2016 remains a top priority for the

Management and Board of Directors.

The following documents are attached: Q1 2016 Report and Q1 2016 Investor

Presentation.

Stavanger, 25th May 2016

For further information, please contact:

Øystein Larsen, CEO, cell phone +47 932 68 743

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

www.bxpl.com