Hunter Group ASA — Earnings Release 2016

Feb 23, 2017

Q4 - 2016 IR Report 24thFebruary 2017

Disclaimer

This presentation includes forward-looking statements which are subject to risks anduncertainties that could cause actual results and events todiffer.

Even though the Company believes that the expectations reflected in the forward-lookingstatements are reasonable, BXPL cannot assure that the presented predictions will be achieved. It has to be taken into account that certain risks and uncertainties that are tied to the presentedforward-looking statements, such as political, economical, financial and legal changes in themarkets BXPL operates in, are beyond the Company's ability to control or predict. Thereforereaders should not place undue reliance on the forward-looking statements.

BXPL does not intend and does not assume the obligation to update any of the presentedforward-looking statements in light of new information except to the extent required byapplicable law and/or regulation.

1. Introduction

• 1. Financial status
• 1. Project status
• oDevelopment Program
• 1. Outlook
• 1. Questions

Subsurface mapping made easy

"Derisking of reserves" – Rystad Energy

No rig needed

More for the price of one

Small environmental footprint

Reservoir Monitoring

• 1. Introduction
• 1. Financial status
• 1. Project status
• oDevelopment Program
• 1. Outlook
• 1. Questions

	Quarters			rear End
Unaudited figures in NOK 1000	Q4 2016	Q3 2016			Q4 2015 Note 31.12.2016	31.12.2015
Revenues
Other Income	19	5	$\Omega$		66	$\Omega$
Total Revenues	19	5	$\Omega$		66	$\bf{0}$
Operating Expenses
External services for development project	65	201	1959		1 5 6 1	8726
Payroll and related costs	1 1 4 4	1 1 6 6	1983		4 1 4 0	9 9 2 1
Other operating expenses	1 3 0 3	731	536		4 3 9 1	8 0 8 3
Capitalised development costs	$-410$	$-632$	$-3069$		$-3516$	$-14124$
Total Operating Expenses	2 101	1 4 6 6	1 409		6577	12 606
EBITDA	$-2082$	$-1461$	$-1409$		$-6512$	$-12606$
Depreciation	4	15	44		99	200
Operating profit (loss)	$-2086$	$-1476$	$-1453$		$-6611$	$-12807$
Net finance income (loss)	$-98$	$-105$		$-114$ 2, 8	$-445$	$-450$
Profit (loss) before taxes	$-2184$	$-1581$	$-1566$		$-7056$	$-13257$
Tax on ordinary result	$\bf{0}$	$\bf{0}$	0		0	$\bf{0}$
Net profit (loss)	$-2184$	$-1581$	$-1566$		$-7056$	$-13257$
Profit (loss) attributable to equity holders of the company	$-2184$	$-1581$	$-1566$		$-7056$	$-13257$
Earnings per share	$-0,12$	$-0,09$	$-0,08$		$-0,38$	$-0,72$
Earnings per share diluted	$-0,12$	$-0,09$	$-0,08$		$-0,38$	$-0,71$

ASSETS	31.12.2016	30.09.2016	Note	31.12.2015
NON-CURRENT ASSETS
Capitalised development costs	149 632	149 316	2, 5	147 768
Patent rights	387	387		387
Total intangible assets	150019	149 703		148 154
Property, plant & equipment	24	28		101
Total tangible assets	24	28		101
TOTAL NON-CURRENT ASSETS	150 043	149 730		148 255
CURRENT ASSETS
Other receivables	605	2 2 2 7	1	3630
Total receivables	605	2 2 2 7		3630
Cash and cash equivalents	335	327		586
TOTAL CURRENT ASSETS	940	2 5 5 4		4 2 1 6
TOTAL ASSETS	150 983	152 284		152 471

EQUITY AND LIABILITIES	31.12.2016	30.09.2016	Note	31.12.2015
EQUITY
Share capital	2 3 1 7	2 3 1 7	$\overline{\mathbf{3}}$	2 3 1 7
Share premium	218 070	218 070	$\overline{4}$	218 070
Other paid in capital	3 9 3 5	3869	$\overline{4}$	4 1 6 7
Total paid in equity	224 322	224 256		224 555
Retained earnings	$-165403$	$-163219$		$-158347$
Total retained earnings	$-165403$	$-163219$		$-158347$
TOTAL EQUITY	58 919	61 038		66 207
LIABILITIES
Capitalised grants	81 500	81 500	5	75 000
Total non-current liabilities	81 500	81 500		75 000
Accounts payables	2 0 6 3	1979	7	3 0 7 8
Public duties payables	281	456		474
Debt financial institutions	6889	6910	8	6711
Other short term liabilities	1 3 3 1	402		1 001
Total current liabilities	10564	9747		11 264
TOTAL LIABILITIES	92 064	91 247		86 264
TOTAL EQUITY AND LIABILITIES	150 983	152 284		152 471

	Quarters				Year end
Unaudited figures in NOK 1000	Q4 2016	Q3 2016	Q4 2015 Note		31.12.2016	31.12.2015
Contribution from operations*	$-2004$	$-1494$	$-1273$		$-6731$	$-12098$
Change in accounts receivables and accounts payables	84	$-862$	$-433$	7	$-1015$	683
Change in other receivables and payables	$-79$	544	$-205$		$-376$	$-936$
Net cash flow from operating activities	$-1998$	$-1813$	$-1911$		$-8122$	$-12351$
Capitalisation of development cost	$-410$	$-632$	$-3069$	2	$-3516$	$-14124$
Net cash flow from investment activities	$-410$	$-632$	$-3069$		$-3516$	$-14124$
Government grants	2 5 4 7	$\mathbf{0}$	2 9 2 2	1	5 1 6 6	8 0 6 0
Contribution from industry partners	0	2 500	0	5	6500	8 3 9 0
Interest received	8	4	16		30	54
Interest paid	$-119$	$-109$	$-130$	8	$-488$	$-505$
Proceeds from borrowings financial institution	0	90	1666	8	178	6711
Net cash flow from financing activities	2 4 3 6	2 4 8 5	4 4 7 4		11 386	22 711
Total net changes in cash flow	8	40	-505		-252	$-3764$
Cash and cash equivalents beginning of period	327	287	1091		586	4 3 5 1
Cash and cash equivalents end of period	335	327	586		335	586
Profit (loss) attributable to equity holders of the company	$-2.184$	$-1581$	$-1566$		$-7056$	$-13256$
Employee options	66	$-33$	137	4	$-232$	508
Depreciation	4	15	44		99	200
Finance income	-8	$-4$	$-16$		$-30$	$-54$
Finance expenses	119	109	130	8	488	505
*Contribution from operations before tax	$-2004$	$-1494$	$-1273$		$-6731$	$-12098$

• 1. Introduction
• 1. Financial status
• 1. Project status
• oDevelopment Program
• 1. Outlook
• 1. Questions

Development Program

• Expanding the operational envelope of the 2nd generation Badger tool
• Qualify and prove four core technology solutions:

Drilling Solution

• Enhanced ultrasonic drilling in low permeability formations
• Cutting Transport Solution
• Transport of dry or wet cuttings from drillbit to compactor inside the tool

Compaction Solution

Make an impermeable plug and obtain necessary space for the tool by use of ultrasonic compaction and micro-fracking

Locomotion Solution

Move tool in packed annulus and unstable geology

Development Program - Status

• Drilling Solution
• Working on solving the "dry drilling" challenge where drillbit design, control system and the ultrasonic transducer are included
• Cutting Transport Solution
• Concept approved. Integration into expected tool shape and size to be done in 2017
• Compaction Solution
• Tests ongoing in University of Glasgow
• Designing a subsurface test chamber that can apply high temperature and high pressure (HTHP) conditions for the testing
• Locomotion Solution
• Working on the most promising concepts for reducing friction and enhancing propulsion of the tool

• Designing a dedicated test equipment for qualification of the concepts

• Funding

• In December, Badger Explorer conducted a successful private placement raising NOK 45 million in gross proceed.
• In addition, a subsequent offering of up to NOK 10 million has been launched for eligible shareholders
• Note: After this reporting period, Badger Explorer successfully raised further NOK 300 million in gross proceeds in an second private placement. A subsequent offering of up to NOK 40 million will be launched during March 2017 for eligible shareholders
  • Complete the Development Program
  • Launch new business opportunities
  • Pursue investment opportunities within the oil service secto r
• Partnership
• No new partnership negotiated
• Statoil partnership: Active with Letter of Intent

• CNPC-DR partnership: Active with Letter of Intent. Political relationship between China and Norway improved by the end of Dec 2016.

• 1. Introduction
• 1. Financial status
• 1. Project status
• oDevelopment Program
• 1. Outlook
• 1. Questions

Outlook

The recent equity offerings have dramatically improved the position of Badger Explorer;

• -The completion of the Development Program will get high priority
• New business opportunities based on existing and new technologies will be prioritised
• -Investment opportunities within the oil service sector will be pursued

• The team will be scaled to get the right traction in the coming activities

• 1. Introduction
• 1. Financial status
• 1. Project status
• oDevelopment Program
• 1. Outlook
• 1. Questions

Thank you for attending