Hunter Group ASA

Earnings Release • Feb 24, 2016

Badger Explorer ASA - Q4 2015 Report

Badger Explorer ASA - Q4 2015 Report

Badger Explorer ASA (BXPL) releases its Q4 2015 Report today. The Company's Q4

2015 investor presentation in Oslo will take place at Arctic Securities ASA's

premises at Haakon VII's gate 5, 0123 Oslo on Thursday, 25th February 2016 at

11:00 - 12:00 CET. The investor presentation in Stavanger will take place at

Badger Explorer ASA's premises at Forusskogen 1, 4033 Stavanger on Friday, 26th

February 2016 at 09:00 - 10:00 CET.

BXPL and Statoil, the current partners in the Development Program, have

continued close and frequent contact to advance the Development Program. Agreed

focus areas for 2015 were:

. Locomotion system

. High Power HPHT transducers for compaction and drilling

. Cuttings transport system

A study of solid-state locomotion with positive conclusions was delivered by a

European company specializing in mechatronic systems for challenging

environments.

In Q4 2015, High Power HPHT transducers, developed under Petromaks2 supported

program, were successfully qualified for operation at 150?C and 700 bars.

Employing cutting edge technology, the transducers represent a significant step

in the development of compaction and drilling systems for the Badger Explorer

tools.

BXPL have also, together with Honeybee Robotics, developed and built a full

scale cuttings transport system. Testing of the system started in Q4 2015 and is

expected to be completed in Q1 2016.

Expenses for Q4 2015 have been reduced while maintaining delivery of key

technical results and development.

Summarizing the Q4 2015 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 fourth quarter ended December 2015 amounted to NOK

1.409 million compared to NOK 5.378 million for the fourth quarter ended

December 2014. Operating expenses for the twelve months ended December 2015

amounted to NOK 12.606 million compared to NOK 21.113 million for the twelve

months ended December 2014.

. BXPL's total comprehensive income shows a net loss of NOK -1.566 million in

the fourth quarter of 2015 compared to NOK -6.087 million in the fourth quarter

of 2014 and a net loss of NOK -13.257 million for the twelve months ended

December 2015 and NOK -23.365 million for the twelve months ended December 2014.

. Cash and cash equivalents were NOK 585,953 end of 2015 compared to NOK 4.351

million end of 2014.

Important deliverables were successfully completed in Q4 2015, and based on

these results further work is planned in 2016 to qualify key parts of the Badger

Explorer concept.

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

soon as possible.

In 2016, BXPL will put more emphasis on developing spin-off applications in

parallel with the Development Program. The development of spin-off applications

together with industrial partners will strengthen the team working on solutions

for the Badger Explorer tool.

Stavanger, 24th February 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