Hunter Group ASA

Quarterly Report • May 20, 2015

Badger Explorer ASA - Q1 2015 Report

Badger Explorer ASA - Q1 2015 Report

Badger Explorer ASA (BXPL) releases its Q1 2015 Report today. The Company's Q1

2015 investor presentation in Oslo will take place at the Hotel Continental on

Thursday, 21st May 2015 at 13:00 - 14:00 CET. The investor presentation in

Stavanger will take place at BXPL's premises at Forusskogen 1, 4033 Stavanger on

Friday, 22nd May 2015 at 09:00 - 10:00 CET.

BXPL completed the Demonstrator Program in February 2015. Since then, the main

focus at BXPL during Q1 2015 has been to prepare for the next phase, The Badger

Development Program (BDP).

The recent fall in the oil price has led to comprehensive restructuring and cost

cutting within the oil industry. As a result, BXPL experiences a reduced ability

from oil companies to support technology development ventures like the Badger

Project.

During Q1 2015, BXPL implemented a large cost saving program to adjust to the

new business climate. By the end of Q1 2015, 38 % of staff were made redundant,

salaries for senior management were reduced and further cost cuts were

implemented. 2015 turns out to be a challenging year, and BXPL has revised its

2015 plan so that the Company will survive on limited cash.

Together with the oil companies, the Development Program has been rescheduled to

fit the present financial climate. This means that BXPL is planning for less

spending during 2015, and a ramp up later during the Development Program.

BXPL is currently negotiating such a rescheduled program plan with the

sponsoring oil companies.

It is BXPL's ambition to enter a partner agreement with one oil company by the

end of H1 2015, sign an agreement with a second partner by the end of Q3 2015

and a third partner within H1 2016. With three partners on-board, the Board of

Directors of BXPL is of the opinion that the funding for the next phase is

secured.

The next step, with three partners on-board and technical progress according to

the plan, will be to initiate a strategic relationship with an oil service

company to speed up product development and prepare for market introduction.

Summarizing the Q1 2015 financial results for BXPL:

. Revenues for Q1 2015 were NOK 0.00, compared to NOK 0.00 for Q1 2014.

. Operating expenses for Q1 2015 were NOK 4.035 million, compared to NOK 4.804

million for Q1 2014.

. EBITDA for Q1 2015 was NOK -4.035 million, compared to NOK -4.804 million for

Q1 2014.

. The cash position at BXPL was NOK 1.082 million as of 31st March 2015,

compared to NOK 10.374 million as of 31st March 2014.

. As of 31st March 2015, BXPL had a net equity of NOK 74.925 million (equity

ratio of 48.9%), compared to NOK 96.449 million as of 31st March 2014 (equity

ratio of 61.6%).

The oil business is currently undergoing comprehensive changes and cost

cuttings. In such a climate BXPL is confident to achieve the necessary support

for the Development Program. BXPL is also confident the agreed technical

deliveries for 2015 are achievable.

During 2016, we expect to see an improving business climate that will enable

BXPL to ramp up the ongoing development activities.

For further information, please contact:

Steinar Bakke, CEO, cell phone +47 930 70 466, office +47 52 97 45 50

Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40

www.bxpl.com