Hunter Group ASA

Earnings Release • Feb 11, 2015

Badger Explorer ASA - Q4 2014 Report

Badger Explorer ASA - Q4 2014 Report

Badger Explorer ASA (BXPL) releases its Q4 2014 Report today. The Company's Q4

2014 investor presentation in Oslo will take place at the Hotel Continental on

Thursday, 12th February 2015 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 Friday, 13th February 2015 at 09:00 - 10:00 CET.

The main focus during Q4 2014 at BXPL was to plan and execute Milestone 5 of the

Badger Explorer Demonstrator Program. The final Milestone, Milestone 6, was

completed during January 2015. The Steering Committee of the Badger Demonstrator

Program approved Milestones 5 and 6 during the Steering Committee meeting on 5th

February 2015.

As reported in the Q2 2014 Board of Directors report, China National Petroleum

Corporation Drilling Research (CNPC DR) Institute has signed an agreement with

BXPL to become the fifth participant in the ongoing BXPL Badger Demonstrator

Program. In addition, CNPC DR has expressed a willingness to participate as a

full member in the next phase development, The Badger Development Program, which

is planned to run from early 2015 to the end of 2017.

Furthermore, CNPC DR has agreed to provide two senior engineers assisting the

BXPL technical staff in Stavanger during the Development Program. All costs

related to the two engineers will be covered by CNPC DR.

During Q4, another area of focus for BXPL has been to prepare for the next and

final phase, the Badger Development Program 2015-2017.

BXPL has had good progress in defining the content of the Development Program

and the main focus forward is to secure the necessary funding for the Program.

Summarizing the Q4 2014 financial results for Badger Explorer ASA:

. Revenues for Q4 2014 were NOK 0.00 and NOK 0.00 as of 31st December 2014,

compared to NOK 0.00 for Q4 2013 and NOK 70,268 as of 31st December 2013.

. Operating expenses for Q4 2014 were NOK 5.378 million and NOK 21.113 million

as of 31st December 2014, compared to NOK 5.131 million for Q4 2013 and NOK

19.105 million as of 31st December 2013.

. EBITDA for Q4 2014 was NOK -5.378 million and NOK -21.113 million as of 31st

December 2014, compared to NOK -5.131 million for Q4 2013 and NOK -19.036

million as of 31st December 2013.

. The cash position at BXPL was NOK 4.351 million as of 31st December 2014,

compared to NOK 24.943 million as of 31st December 2013.

. As of 31st December 2014, BXPL had a net equity of NOK 78.956 million (equity

ratio of 52.4%), compared to NOK 101.628 million as of 31st December 2013

(equity ratio of 61.1%).

The delivery of Milestones 5 and 6 and the conclusion of the Demonstrator

Program represent a major reduction of the technical risk related to the

development of the Badger Explorer technology.

The main focus for BXPL organization in 2015 will be to secure participation of

the Development Program from current and possibly new partners, and start the

execution of the Program.

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