Hunter Group ASA

Earnings Release • May 19, 2014

Badger Explorer ASA - Q1 2014 Report

Badger Explorer ASA - Q1 2014 Report

Badger Explorer ASA (BXPL) releases its Q1 2014 Report today. The

investor presentation in Oslo will take place at the Hotel Continental

on Tuesday, 20th May 2014 at 13:00 - 14:00 CET. The investor

presentation in Stavanger will take place at Badger Explorer ASA's

premises at Forusskogen 1, 4033 Stavanger on Wednesday, 21st May 2014 at

09:00 - 10:00 CET.

During the 1st quarter of 2014, BXPL:

· Delivered Milestone 4 of the Badger Explorer Demonstrator Program on

the 29th January 2014

· Agreed with the partners on revised content for Milestones 5 and 6

and how to conclude the Demonstrator Program

· Secured funding of the HPHT Ultrasonic project and agreed on final

terms with the Research Council of Norway (RCN)

· Continued discussions with the partners regarding scope of work and

funding of the Development Program

· Continued discussions regarding participation in the Demonstrator

Program and the Development Program with a new potential partner

· Outlined the long term Field testing and the Field Pilot Program.

The delivery of Milestone 3 (October 2013) and Milestone 4 (January

2014) represents a significant risk reduction for the Badger Explorer

technology.

Summarizing the 1st quarter of 2014 financial results for the Badger

Explorer Group:

· Revenues for Q1 2014 were NOK 0.00, compared to NOK 23,399 for Q1

2013

· Operating expenses for Q1 2014 were NOK 4.804 million, compared to

NOK 5.874 million for Q1 2013

· EBITDA for Q1 2014 was NOK -4.804 million, compared to NOK -5.850

million for Q1 2013

· The cash position at BXPL was NOK 10.374 million as of 31st March

2014, compared to NOK 16.063 million as of 31st March 2013

· As of 31st March 2014, BXPL had a net equity of NOK 96.449 million

(equity ratio of 61.6%), compared to NOK 121.184 million as of 31st

March 2013 (equity ratio of 70.5%).

BXPL and the partners have agreed to revise Milestones 5 and 6. The

definition of the Scope of Work for the next phase development and the

Development Program will be vital parts of the deliverables in Milestone

6 and will be done in close co-operation with the partners.

In order to accelerate the development of the Badger technology, BXPL

and the partners have established several technical task forces to

address and solve the main technical challenges. BXPL is also working

very closely with the partners to secure the necessary funding for the

Development Program.

The Board of Directors is confident that the remaining Milestones of the

Badger Explorer Demonstrator Program will be delivered as planned by the

end of 2014. Furthermore, the Board is optimistic regarding the

partners´ continued support for the Badger Explorer Development Program,

which will reduce the time to market for the commercial Badger Explorer

tool.

Stavanger, 19th May 2014

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